Capstone Energy+ is expanding its microturbine installation at Chile’s Gregorio Refinery after securing a follow-on order that will lift on-site generation capacity from 1.4MW to 2.2MW.
Capstone Energy+ is expanding its microturbine installation at ENAP’s Gregorio Refinery in Chilean Patagonia from 1.4MW to 2.2MW.
The project, for Chilean state-owned energy company ENAP, will add a C800 Signature Series microturbine to the existing system at the refinery in the Magallanes region. Commissioning is expected in November 2026.
For Capstone, the repeat order provides more than an incremental capacity increase. It offers evidence that distributed generation can establish a role in industrial facilities where grid resilience, maintenance access and environmental conditions make conventional power solutions difficult to operate.
Gregorio is described as the world’s southernmost refinery. Located in Patagonia, it processes more than 200,000 cubic metres of crude oil annually and supplies diesel, aviation kerosene and other refined fuels across southern Chile. Its output also supports maritime activity and Antarctic operations and expeditions.
That strategic role makes dependable electricity particularly important. Winter temperatures can fall below 0°F, while winds can exceed 75mph or 120km/h. At a remote industrial site exposed to such conditions, equipment failures can become significantly more complicated and costly than they would be at facilities close to major population centres.
Capstone’s follow-on order was secured through ISPG, its authorised distributor in Chile. The expanded system will run on pipeline natural gas and provide critical power for refinery operations.
Reliability in Patagonia
The expansion follows the performance of the microturbines already operating at Gregorio. According to Capstone, ENAP had previously faced reliability and cost problems with conventional generators, particularly because maintenance at a remote site becomes more difficult during severe winter weather.
Capstone’s microturbines use a single-moving-part architecture, a design intended to reduce maintenance requirements while supporting continuous operation. The company said the existing installation had addressed previous reliability challenges, leading ENAP to increase capacity.
“When a customer operating the southernmost refinery on the planet chooses not just to deploy, but to expand its Capstone footprint, it sends a powerful message about the real-world impact of our on-site power generation solutions,” said Vince Canino, President and CEO of Capstone Energy+.
Canino said oil and gas operators were increasingly considering the technology for remote, mission-critical locations where uptime is essential and maintenance access can be restricted.
“In a location where reliability isn’t optional, and where maintenance access is limited, our systems deliver relentless uptime and consistent performance, even in the harshest of environments,” he said.
The refinery therefore represents a demanding test case for distributed energy. Reliability is not simply a question of keeping industrial processes running. Fuel produced at Gregorio supports transport and other operations across a geographically isolated region, increasing the consequences of disruption.
For ENAP, expanding an already deployed system also reduces some of the technology risk associated with adopting a new generation platform. Rather than beginning with an untested installation, the company can assess operational data from the existing 1.4MW system before extending the architecture to 2.2MW.
Distributed power gains ground
The project also reflects a broader change in the way industrial organisations are approaching energy resilience. Behind-the-meter generation allows facilities to produce electricity close to where it is consumed, reducing dependence on centralised infrastructure and potentially giving operators greater control over reliability, efficiency and emissions.
This approach can be particularly relevant for energy-intensive industrial sites in remote areas. Long transmission distances, constrained grid infrastructure and difficult maintenance conditions can increase operational risk, while interruptions can have significant financial and logistical consequences.
Microturbines offer one route to addressing those challenges. Capstone positions its systems as lower-emission alternatives for continuous on-site power, with applications spanning industrial and commercial facilities as well as emerging data centre workloads.
At Gregorio, the system will use pipeline natural gas, giving the refinery an on-site source of generation suited to continuous critical operations. The additional 800kW will increase total Capstone capacity by more than 57%, creating a larger distributed generation resource at the site.
Cristian Balic, Principal at ISPG, said the refinery needed reliable generation capable of operating under extreme conditions while also helping reduce emissions and operating costs.
“The existing Capstone installation has answered that challenge decisively, delivering strong operational performance while helping address load variability, lower maintenance requirements, and achieve efficiency objectives. Balic said.
“This follow-on order reflects ENAP’s continued confidence in Capstone’s ability to support its refinery’s evolving energy needs,” Balic said.
The emphasis on load variability is significant. Industrial facilities rarely consume electricity at a completely constant rate. Generation systems that can respond effectively to changing demand can help operators manage energy use without sacrificing availability for essential equipment.
Latin American opportunity
For Capstone, the Chilean order also strengthens its position in Latin America, where mining, oil and gas, manufacturing, telecommunications and other energy-intensive sectors often operate far from major grid infrastructure.
Patagonia illustrates the opportunity particularly clearly. Geography and climate place unusual demands on infrastructure, making resilience a fundamental design requirement rather than an optional enhancement.
Capstone argues that demand is increasing for clean, reliable and continuously available on-site power across the region. Repeat orders such as ENAP’s are important because they demonstrate how distributed generation can move from an initial deployment into a larger part of an organisation’s energy strategy.
The project also highlights the role of local distribution partners. ISPG secured the order and provides Capstone with in-country market expertise, an important factor when deploying specialised generation technology into complex industrial environments.
ENAP itself operates across exploration and production, refining and commercialisation. As Chile’s state-owned energy company, its infrastructure has national and regional importance, while Gregorio occupies an unusually strategic position because of its proximity to maritime routes and Antarctic activity.
Although the expansion is relatively modest compared with utility-scale generation projects, its significance lies in where and how the technology is being used. A 2.2MW installation supporting critical refinery operations at the edge of Patagonia provides a practical example of decentralised power being deployed where reliability constraints are severe.
The project is also a reminder that the energy transition is not limited to large renewable developments or wholesale changes to national grids. Industrial decarbonisation and resilience increasingly involve smaller technologies installed directly at the point of consumption, where operators can target specific operational problems.
For facilities such as Gregorio, the question is not simply how to generate electricity with fewer emissions. Power systems must also withstand extreme weather, minimise maintenance interventions and deliver predictable performance throughout the year.
ENAP’s decision to expand rather than replace its existing Capstone installation suggests the first phase met those requirements sufficiently to justify further investment. When the additional C800 system enters service, the refinery will have 2.2MW of Capstone generation supporting one of the world’s most geographically challenging refining operations.
That makes Gregorio a useful demonstration site for the wider industrial energy market. If distributed generation can prove dependable in Patagonia, the model could have relevance for other remote facilities where conventional generators, constrained grids and difficult maintenance access remain persistent problems.
For Capstone, the November commissioning will therefore represent more than the completion of another equipment order. It will extend a live reference installation in an extreme operating environment and provide further evidence for customers assessing whether behind-the-meter generation can combine resilience, lower maintenance requirements and emissions improvements.
The expansion ultimately reflects a straightforward industrial calculation: technology that performs reliably earns the opportunity to scale.
