Polar Power gets trial order for 50 propane generators in Southeast Asia

Polar Power, Inc. (NASDAQ: POLA) announced it has received a trial order for 50 propane-fueled DC generators from an unnamed Tier 1 telecom operator in Southeast Asia, according to a company press release. The generators will power off-grid and bad-grid cell sites.

The trial represents the first phase of a potential five-year program covering approximately 2,500 of the customer's sites. Discussions have begun on a second phase of 200 propane generators, though the customer has not committed to a broader deployment. If the full program proceeds, Polar Power estimates it could represent up to approximately $60 million in revenue over five years. Individual units are priced between $19,000 and $27,000 depending on accessories and service options.

The company states its DC generators use approximately 40% less fuel than diesel AC generator alternatives without solar, and up to 59% less when paired with solar. The oil change interval for Polar's system is approximately 4,500 hours, compared to roughly 250 hours for standard diesel AC gensets.

Polar Power said it has purchased approximately 2,000 Toyota 1KS engines in anticipation of potential volume growth. The company previously wrote down approximately $4 million of that engine inventory and said using the existing stock may support improved margins as volumes increase.

A local LPG distributor is expected to receive a contract to fuel each site for six years, a arrangement the company described as essential to the program.

"This order is an important step toward modernizing telecom power with LPG and DC systems," said Arthur D. Sams, Chief Executive Officer of Polar Power.

Polar Power is headquartered in Gardena, California, and designs and manufactures DC power systems for telecom and other applications.

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