U.S. Sen. Shaheen Praises FlexEnergy, Distributed Generating Co., as they Ink $400 Million Export Deal – Slated to create over 120 jobs

“Exporting is one of the greatest opportunities for small businesses to grow their companies, tap into new markets and succeed in the global economy,” said United States Senator [Jeanne] Shaheen of New Hampshire (D). “FlexEnergy is a model for how to capitalize on export initiatives to create New Hampshire jobs.” 

FlexEnergy, Distributed Generating Co. Ink $400 Million Deal


William Pentland, Forbes.com

Distributed energy is about to leap from the puddle into the pond.

If – or, when – it does, you may want to thank a little manufacturing company based in Portsmouth, NH for bringing distributed energy from the margins into the mainstream market.

Flex Energy, a microturbine manufacturer spun off from the industrial equipment conglomerate Ingersoll Rand, landed a landmark sales deal today with a venture-backed investment group based in Russia, the Distributed Generating Company (DGC).

Based in the Russia’s industrial Samara region, DGC agreed to pay FlexEnergynearly half a billion for a whopping 200 megawatts of microturbine generating capacity over the next three years.

The first delivery of microturbines is scheduled to take place in January.

Established in 2012 by a Russian venture fund, DGC is focused on filling a growing demand for distributed power solutions for small to medium sized enterprises.

“The basic plan is to use the microturbines as a platform for developing a set of standardized solutions for quick deployment, and offer customers long-term, predictable contracts, for on-site power generation, with no grid connection fees,” said Dennis Shomko, a partner at Avicon-UK who represents DGC, during an international project finance conference held today in New York City by Broad Street Capital.

The cost of connecting to the electric grid in Russia can be astronomical.

“As a rule of a thumb, grid connection fees are about $1 million per megawatt,” said Shomko. “That is steep, by all standards. What is more, the process is extremely bureaucratic, there are waiting lists, brown envelopes, restrictions – and no other options.”

Shomko said that lack of access to affordable, reliable power supplies has hampered the growth of small, entrepreneurial enterprises in Russia.

The solution: natural gas-fired onsite power solutions.

“A large number of enterprises are already connected to the gas mains, and, overall, the situation with new connections to the mains is a no-brainer: it is relatively cheap and quick, and does not require expensive downstream infrastructure,” said Shomko.


November 14, 2013 (NEW YORK) FlexEnergy, Inc. of Portsmouth, New Hampshire announced a contract for sale of 200MW gas turbines to Distributed Generating Company, LLC of Samara, Russia (DGC).   The American made units will be used by DGC to provide lower cost and dependable baseload electricity principally to medium and small sized businesses in Russia. The order will drive the doubling of employment at FlexEnergy and create additional jobs at its suppliers in the Northeastern United States.   The deal has begun with a significant direct purchase, however, the majority of the order is subject to financing approval by the Export Import Bank in the United States.

DGC chose the privately held FlexEnergy as the hardware supplier for its power generation business in Russia after an extensive research process which identified FlexEnergy’s GT Series Turbine Generators as offering the best solution for the particular demands of DGC’s business in Russia.  The design technology of FlexEnergy’s Turbine Generators have proven their dependability logging over 4,000,000 operating hours across its fleet.  DGC will be buying the recuperated, high efficiency GT 250kW and 333kW turbines, which are the only turbines in their size class to offer highly robust synchronous generator technology, allowing the units to easily pick up and shed greater loads. Additionally, FlexEnergy turbines are the only turbines in their class to offer the potential for seamless transition from grid-parallel to grid-isolated operation, which can be invaluable in situations where grid sourced electricity is at times intermittent.  The GT Series Turbines also offer class leading emissions performance, allowing DGC and its clients to demonstrate exceptional environmental performance.

To meet increasing demand, FlexEnergy has recently expanded production facilities in New Hampshire to over 89,000 square feet.  This expansion reinvigorated a nearby factory, previously vacated by an electronics manufacturer that had moved manufacturing offshore.  Mark Schnepel, President of FlexEnergy said: “Being selected by DGC validates our decision to further invest in our business and should create more than 60 new high quality manufacturing jobs in New Hampshire at FlexEnergy and many more at FlexEnergy’s component suppliers primarily located in the Northeast.”  Existing on the grounds of a former Air Force base in New Hampshire, FlexEnergy plans to continue its preference for hiring veterans in its business.

“DGC’s business model needs align closely with our products biggest strengths,” said Schnepel.  “We make rugged industrial equipment well suited for the demands placed upon small and medium sized businesses growing in a market with inexpensive natural gas and operational challenges created by the stressed electrical grid. Our product’s capabilities make it very competitive in these international markets, like Russia.”

“Exporting is one of the greatest opportunities for small businesses to grow their companies, tap into new markets and succeed in the global economy,” said United States Senator Shaheen for New Hampshire. “FlexEnergy is a model for how to capitalize on export initiatives to create New Hampshire jobs.”

“This deal is a another step forward in bilateral cooperation”, said Dr Dennis Shomko (Avicon, UK), who led the team of negotiators on behalf of DGC.” Western countries and companies can see their Russian counterparts as reliable business partners, engaged in commerce outside of the commodity space in oil and gas.  There is substantial business in hi- and medium- tech products across many sectors. Through projects like this, we want to stimulate rapid growth of small and medium sized businesses (SMEs) in Russia, which play a fundamental role in economic growth of developed and a large number of developing countries.”

“At the same time,” he added,  “the relationship with FlexEnergy will give a boost to a number of American SMEs, not just FlexEnergy. But what is more important, is the precedent we are trying to create, where cross-border SMEs can enter into a long-term, multi-million-dollar cooperation, with the support of well-established institutes, such as ExIm bank. For many, it remains uncharted waters: we want to show, that it is accessible to those who want to create competitive, innovative products and export them to similar-minded partners across the globe.”


DGC is a privately owned independent power producer in Russia.  It contracts with small and medium sized Russian commercial and governmental entities to provide safe, reliable and environmentally friendly power from Russia’s abundant natural gas resources at a discount to local grid power.

Broad Street Capital Group, an international private company, based in New York City, acts as the exclusive financial advisor to DGC in the transaction.

Avicon Partnership (London) acts as a business and management consultant in DGC’s development of Russia’s largest independent power producer project to date.

FlexEnergy is a privately owned original equipment manufacturer of gas turbines in Portsmouth, New Hampshire, formerly a division of Ingersoll Rand.  FlexEnergy provides a line of rugged and low maintenance gas turbines to commercial and oil & gas industry users in the United States and around the world.


About Alexander Gordin
An international merchant banking professional with over twenty years of business operating and advisory experience in the areas of export finance, international project finance, risk mitigation and cross-border business development. Clients include foreign governments, municipalities and state enterprises as well as Fortune 500 and small/medium enterprises. Strong entrepreneurial instincts, combined with leadership and strategic skills. Transactional and negotiations experience in over thirty five countries. Author of the highly acclaimed "Fluent in Foreign Business" book and creator of the "Fluent in OPIC", "Fluent in EXIM","Fluent In Foreign Franchising", "Fluent in FCPA",and "Fluent in USTDA" seminar/webinar series. Currently developing "Fluent In ......" seminars and publications. Co-author of the Fi3 Country Business Appeal Indices. Extensive international business development and project finance transaction experience in healthcare, aerospace, ICT, conventional and alternative energy infrastructure, distribution and hospitality industries. Experience managing international public and private corporations. Co-Founded three companies abroad. Strong Emerging and Frontier Market expertise. Published and featured in numerous publications including: The Wall Street Journal, Knowledge@Wharton, NBC.com, The Chicago Tribune, Industry Week, Industry Today, Business Finance, Wharton Magazine Blog, NY Enterprise Report, Success magazine, Kyiv Post and on a number of radio and television programs including: Voice of America, CNBC, CNNfn, and Bloomberg. Frequent speaker on strategy, cross-border finance and international business development. Executive MBA from the Wharton School at the University of Pennsylvania. B.S. in Management of Information Systems from the Polytechnic Institute of NYU. Specialties Strategic Management Advisory, Export Finance, International Project Finance & Risk Management, Cross-border Negotiations, Structured Finance transactions, Senior Government and Corporate officials liason

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