Alter NRG Reports Second Quarter 2012 Activities and Financial Results
OTCQX - ANRGF
CALGARY, Aug. 13, 2012 /CNW/ - (TSX - NRG; OTCQX - ANRGF) - Alter NRG Corp., ("Alter NRG" or the "Corporation") is pleased to report on its corporate activities and financial results for the three month period and six months ended June 30, 2012
The Corporation's focus is the Westinghouse Plasma Gasification Technology which is the worldwide leader in creating energy from waste using plasma gasification. We market and sell the Westinghouse Plasma Technology through our wholly owned subsidiary, Westinghouse Plasma Corp. ("Westinghouse Plasma"). Westinghouse Plasma is the industry leader for the treatment of all types of waste (industrial, household, commercial, hazardous, etc.) using plasma technology and converting it into useable energy such as electricity, syngas (replacement for natural gas), heat, steam, or liquid fuels such as diesel or ethanol.
Our Vision - To provide the leading technology platform for converting the world's waste into clean energy for a healthier planet.
Our Mission - As the industry leader, we will forge and dominate an industry segment that transforms current waste management practices. We build shareholder value by enabling customers to convert waste into clean energy by providing plasma gasification products, services and solutions that are innovative and environmentally friendly.
Westinghouse Plasma is a commercially proven technology that is used in two commercially operating facilities in Japan that have been converting waste into energy for more than 9 years, as well as facilities operating in India and under construction in China and England. From an environmental perspective, a plasma facility will have significantly lower emissions than other alternative energy facilities and have an overall emissions profile lower than a natural gas combined cycle power facility, which is considered the cleanest fossil fuel production. From an economic perspective waste to energy projects have strong project returns in populous areas, as the projects receive revenues from tipping fees to take the waste and then also receive revenues for the sale of energy.
Alter NRG is pleased to be presenting highlights for its second quarter of 2012 as revenues have increased by 225% over the prior year. This is reflective of a maturing business plan with significant long-term potential.
The second quarter of 2012 had $4.0 million in revenues, a 225% increase over prior year, and the largest quarterly revenues in Alter NRG's history for plasma gasification. This revenue reflects the progress on the fabrication of the large scale gasifier as well as license revenues from the addition of a strategic customer in the Czech Republic and Slovakia.
- Sales of $4.0 million which is an increase over prior year of 225%. Revenue is expected to continue to increase in 2012 as the pace of fabrication increases as well as further licensing opportunities which are expected to transact before year-end.
- Executed approximately 23% of the purchase order from Air Products, a US based Fortune 500 Company. The company has previously announced its intention to build 5 advanced gasification facilities in the United Kingdom in the coming years.
- Executed an agreement with a developer, PGP Terminal a.s. ("PGPT"), for site licenses in the Czech Republic and Slovakia for $4.375 million, with 10% being paid upfront. The developer has been working for several years on waste-to-energy projects and has a portfolio of projects that it is currently advancing in their home market. They expect to begin engineering on the first facilities in late 2012 with the intention of ordering equipment in 2013.
- Completed the necessary technical work with Coen Company, Inc., a leading boiler burner manufacturer worldwide, to provide syngas as a viable replacement fuel to power plants that currently utilize fuel oil. We also advanced commercial discussions with several island nations to provide our fuel replacement solution that delivers significant economic and environmental benefits.
- SMS Infrastructure ("SMS") (who has already constructed two hazardous waste facilities utilizing Westinghouse Plasma technology) advanced two projects into the formal regulatory approval phase with an expected equipment order in late 2012 or early 2013. These are the more advanced projects within a larger pipeline of projects, which SMS is developing and marketing in India and the Middle East. SMS is a licensee of the Westinghouse Plasma Gasification Solution and provides turnkey hazardous waste facilities to the market and has approximately 140 people in their gasification division.
- Wuhan Kaidi ("Kaidi"), which ordered engineering and torches previously, continued construction of its demonstration facility in China. Upon successful demonstration (expected in Q3 of 2012), Kaidi has more than 100 sites identified to take biomass and convert it into power and ethanol.
- Supported a demonstration facility in Shanghai China, for which we have delivered the detailed engineering and torches. The facility has finalized its feedstock agreement; with a large Chinese waste company, and its site location and they are advancing the site plan.
- Advanced negotiations on several torch orders in international markets. One negotiation in China has advanced to a signed agreement for with delivery dates in 2012 and 2013. The agreement is awaiting final approvals and receipt of the mobilization payment before work will commence.
- Finalized the detailed engineering on the standard design of the 200 tonne per day Westinghouse Plasma Gasification Solution for a project in Minnesota being developed by the Koochiching Development Authority. The standard gasifier is expected to sell for $12 million and the project has now applied for regulatory approval.
- Continued the regulatory process and financing efforts for the Dufferin County energy-from-waste project in Ontario, using the standardized 200 to 400 tonne per day gasification solution. This project currently is being developed by Alter NRG through a subsidiary called Navitus Plasma.
- With the introduction of Walter Howard as the newly appointed Chief Executive Officer, the Corporation began creating a structure for its investment options in current projects, to provide a more formal funding structure for the following investment options. Alter NRG has options to invest with key customers, including Air Products, which allow the Corporation to elect on the option after the project receives regulatory approval but without any promoted costs. This is a favorable option for the Corporation as it does not have to deploy the risky development capital but can participate in the project level annuity cashflow after the project has been de-risked.
In addition to the highlights above, customers around the globe continue to advance their business development efforts using the Westinghouse Plasma Gasification Solution. This includes exclusive license agreements for territories that are in advanced negotiations.
- Closed the sale of CleanEnergy, the Corporation's geoexchange division, for $5 million of shares so that the Corporation could focus exclusively on the plasma gasification business.
- Raised financing of approximately $2.5 million to strengthen the corporate balance sheet and show our customers we have access to capital. This is important to attract new strategic customers who are looking at pursuing long-term business plans using the Westinghouse Plasma Technology.
- Appointed Walter Howard, Chief Executive Officer to the board of directors at the annual general meeting of shareholders. This replaced Michael Heier, who served as a director since the inception of Alter NRG and resigned in April to pursue a newly formed business enterprise.
Late last year we announced the sale of a full-scale gasifier to a large Fortune 500 Company which I believe was a major commercial tipping point. The Tees Valley project is providing us the opportunity to substantiate our technology and engineering in a very big way - not only to Air Products and Chemicals, but to the industry as a whole.
It is a paradigm shifting project in many ways:
- It is at a much larger scale than previous projects, taking approximately 1,000 tonnes per day of household waste.
- This is also a meaningful project for the energy sector as a whole producing 49 MW, which is enough electricity for 50,000 homes.
- It is using a more advanced power generation system, through its combined cycle configuration, which provides greater energy efficiency and cleanliness.
- It is being advanced by a well respected industry leader.
This project has provided the tipping point that has brought us many opportunities that we intend to translate into shareholder value. We are the clear industry leader that provides a solution to both large-scale waste management challenges, but also our increasing need for energy.
The tipping point was not just reached by a single project. The success story was supported by 20 years of innovative thinking, R&D and hard work by many people inside of Westinghouse, and also Alter NRG. Our commercial facilities in Japan and India are a crucial part of that history and continue to play a vital role in our advancement. We continue to take potential customers to these facilities so they can witness firsthand the technology in action, however, the customers today are much more sophisticated and well funded than before. In this difficult capital market environment our strategy is to continue to partner with companies that have the proven capability and the capital available to execute.
The good news is that large, capable companies are actively seeking out our technology. That is tempered by the reality that these are long lead time projects and will take time to develop. Therefore, the fact that we are past a tipping point will be most clear in hindsight in the future. Two new facilities are currently under construction in China (both with numerous follow-on opportunities), two additional facilities are now in regulatory approvals in India by our strategic customer in that jurisdiction, and our Fortune 500 partner in England has publicly stated its intention to continue to develop additional facilities. We are past the tipping point and are now looking to add to our list of capable strategic customers.
Part of our growth will be co-investment into projects that are being developed by capable partners and have strong financial returns. We are not the developer - that is a time-consuming and often expensive process best left to larger institutions and specialized (often local) teams. We have options to invest along-side the developer once the projects have achieved their major commercial milestones. I have built a career financing energy projects and believe this an area where we can add significant shareholder value.
Plasma gasification is a long-term story but having hit the commercial tipping point provides me optimism that we will execute on significant commercial contracts in the latter half of 2012 and into 2013. There is no predicting the ups and downs of capital markets, but energy and waste management solutions are in demand; critical demand in some cases and with a disciplined approach Alter NRG is uniquely positioned to grow and be successful, and to build value for our shareholders. We are charting a path to success for our Corporation, our customers and our shareholders.
|SELECT FINANCIAL RESULTS ($)|
|Balance Sheet||June 30, 2012||December 31, 2011|
|Total assets||$ 63,449,395||$ 63,173,939|
|Income Statement||Three months ended||Six months ended|
|June 30, 2012||June 30, 2011||June 30, 2012||June 30, 2011|
|Sales||$ 3,963,284||$ 1,219,862||$ 5,341,741||$ 2,585,160|
|Loss from continuing operations||(1,797,533)||(1,826,572)||(4,390,641)||(4,283,344)|
|Loss from discontinued operations||(252,606)||(8,061,203)||(602,913)||(9,537,311)|
|Basic and diluted loss per share - continuing operations||(0.03)||(0.03)||(0.07)||(0.07)|
|Basic and diluted loss per share - discontinued operations||-||(0.13)||(0.01)||(0.15)|
The Toronto Stock Exchange does not accept responsibility for the adequacy or accuracy of this release.
Advisory Respecting Forward-Looking Statements:
This news release contains certain forward-looking information and statements within the meaning of applicable securities laws. The use of any of the words "expect", "anticipate", "continue", "estimate", "objective", "ongoing", "may", "will", "project", "should", "believe", "plans", "intends", "confident", "might" and similar expressions are intended to identify forward-looking information or statements. In particular, but without limiting the foregoing, this news release contains forward-looking information and statements pertaining to the following: availability and cost of key materials and labour and availability of funds with respect to the amount of capital expenditures and scheduled commencement of operations; timing of regulatory approval including various permits from the applicable government authorities; the assessment of capital markets including the availability of debt and equity in current market conditions; commodity prices resources that impact the Corporation's operations directly and indirectly; extent of investment by government authorities in infrastructure projects; the financial and operational health of key partners in various projects; the continued development of the Corporation's technology and its use in various applications and other expectations, beliefs, plans, goals, objectives, assumptions, information and statements about possible future events, conditions, results of operations or performance. Various assumptions were used in drawing the conclusions or making the projections contained in the forward-looking statements throughout this news release.
The forward-looking information and statements included in this news release are not guarantees of future performance and should not be unduly relied upon. Forward-looking statements reflect management's current beliefs and assumptions, based on information currently available to management. A number of factors could cause actual results to differ materially from the results discussed in the forward-looking statements, many of which are beyond the control of the Corporation. Among the material factors that could cause actual results to differ materially from those indicated by such forward-looking statements are: that the information is of a preliminary nature and may be subject to further adjustment; unforeseen environmental effects; the completion of strategic partner's projects; arrangements with key suppliers; potential product liability and other claims; other business risks outlined in this news release, including risks associated with the proprietary technology; the possible unavailability of financing at competitive rates and the related effect on development activities; the effect of energy price fluctuations; changes in government regulation, including changes to environmental regulations; the effects of competition; the dependence on senior management and key personnel, and fluctuations in currency exchange rates and interest rates, as well as those factors discussed in or referred to under the heading "Risk Factors" in the Corporation's Annual Information Form dated March 28, 2012 available at www.sedar.com. Such information and statements involve known and unknown risks, uncertainties and other factors that may cause actual results or events to differ materially from those anticipated in such forward-looking information or statements.
The Corporation cautions that the foregoing list of assumptions, risks and uncertainties is not exhaustive. The forward-looking information and statements contained in this news release speak only as of the date of this news release, and the Corporation assumes no obligation to publicly update or revise them to reflect new events or circumstances, except as may be required pursuant to applicable securities laws.
SOURCE: Alter NRG Corp.For further information:
Walt Howard, Chief Executive Officer
(403) 806-3877 email@example.com
Daniel Hay, Chief Financial Officer
(403) 214-4235 firstname.lastname@example.org