SPG expands turbine technology partnership with Honeywell to include Energy Services market

BROOKSHIRE, Texas–(BUSINESS WIRE)–Signal Power Group (“Signal Power” or “SPG”) announced today an expansion of its partnership with Honeywell to broaden the reach of Honeywell’s storied turboshaft turbine engine technology. The latest turboshaft technology, developed as part of Honeywell’s T55-714C program, expands the partnership to now include the energy service market. The advanced turboshaft technology has been exclusively licensed to Signal Power, which will continue to be the original equipment manufacturer, for use in distributed power generation, combined heat and power, pressure pumping, marine propulsion, and other energy and industrial applications. These new equipment packages will broaden SPG’s product offering and offer greater versatility to customers. The strategic relationship between Honeywell and Signal Power continues to be supported with investment funds managed by Morgan Stanley Energy Partners, part of Morgan Stanley Investment Management, which remains the majority shareholder in SPG.

“These turboshaft upgrades will create a new paradigm for high-density energy solutions with applications in the industrial, energy service and marine industries. The technology offers many advantages that include significantly more horsepower, lower maintenance hours and costs, substantially lower emissions, and greater fuel efficiency. Innovative solutions from Signal Power and Honeywell will accelerate the transition to environmentally friendly fuel sources, renewable natural gas and hydrogen blends, that provide our customers lower-cost alternatives and reduce their carbon footprint with a clean source of power,” said Rob Marchitello, Chief Executive Officer of SPG.

“This expanded license will further support the ongoing and historic transition from diesel fuel-based equipment to lower cost and cleaner fuel sources, including natural gas and even hydrogen,” said Rod Hynes, Vice President Defense Americas at Honeywell Aerospace. “The ability under this license to now provide a more efficient 6,000 shaft horsepower class turbine engine in the energy service markets should further separate SPG from its competition.”

“We are proud to support the continued growth of SPG and its outstanding team in its expanding strategic alliance with Honeywell, a world-class partner with market-leading turbine engine technology,” said John Moon, head of Morgan Stanley Energy Partners. “We believe that this license for the improved turboshaft technology further differentiates SPG’s product offering and delivers a drop-in replacement for its current engine providing even greater value to customers.”

SPG continues to serve its energy service, industrial and marine customers with a complete portfolio of solutions, including a patented controls technology and a proprietary multispeed gearbox delivering a range of speeds engineered for specific customer applications. SPG provides a wide range of service plans that include performance monitoring and predictive maintenance, further reducing downtime and costs.

As part of their strategic relationship, Honeywell and SPG will continue exploring even higher horsepower engines and advance the use of alternate and hydrogen blended fuels to further reduce emissions in its equipment.

For more information on Honeywell’s gas turbine, or aerospace propulsion offerings, visit aerospace.honeywell.com.

About SPG

SPG is a leading provider of sustainable energy solutions, and related services for the global industrial, energy and marine markets. SPG’s product offerings include turbine drive trains and related solutions for electric power generation, including microgrids, datacenters, combined heat and power and mobile power solutions, natural resources applications and the marine end markets. SPG is a portfolio company of Morgan Stanley Energy Partners.

About Morgan Stanley Energy Partners

Morgan Stanley Energy Partners, the energy-focused private equity business of Morgan Stanley Investment Management, is a leading energy private equity platform that makes privately negotiated equity and equity-related investments in energy companies located primarily in North America. Morgan Stanley Energy Partners pursues a differentiated investment strategy, focused on the buyout and build-up of strategically attractive, established energy businesses across the energy value chain in partnership with world-class management teams. For further information about Morgan Stanley Energy Partners, please visit www.morganstanley.com/im/energypartners.

Contacts

SPG Contact:
J Chris Boswell, Chief Commercial Officer
investorrelations@signalpwr.com
Phone: +1 888-SPG-POWR

Morgan Stanley Energy Partners Contact:
Alyson Barnes, Executive Director
alyson.barnes@morganstanley.com
Phone: +1 646 536-1733