Alter NRG Corp. sells exclusive license for South Korea to POSCO ICT for $3 million
OTCQX - ANRGF
CALGARY, Sept. 5, 2012 /CNW/ - Alter NRG ("Alter NRG" or the "Company") is pleased to announce it has executed an exclusive territory license and joint development agreement ("the Agreement") with POSCO ICT for US$3 million. Under the terms of the agreement, POSCO ICT will have exclusive access for 5 years to Alter NRG's Westinghouse Plasma Gasification Technology for projects that are located in South Korea. POSCO ICT is a subsidiary of POSCO (NYSE: PKX; LSE: PIDD), which is one of the world's largest steel companies, and provides engineering and innovative technology products and services worldwide.
The Agreement stipulates that POSCO ICT will pay an initial installment of US$1 million with the remaining US$2 million paid when POSCO ICT finalizes an engineering contract for its initial project in South Korea. The US$3 million represents exclusive license fees and Alter NRG will provide engineering support, plasma gasification equipment and assist POSCO ICT during the commissioning for each project at market rates. POSCO ICT will also purchase site licenses for each project which provide Alter NRG the option to invest up to 25% in any POSCO owned and operated projects that utilize the Westinghouse Plasma Gasification Technology. Posco ICT currently has a project advancing which project output and economics are being reviewed. Under the term of the agreement Posco ICT must make the initial installment by October 15th, 2012 and failure to make this payment will nullify the agreement.
Walter Howard, Alter NRG's CEO, states "We are delighted to have a globally recognized company like POSCO ICT as a customer. After working with the POSCO ICT team for the past year, it is clear that POSCO ICT is aggressively pursuing waste to energy solutions in South Korea. POSCO ICT is another example of a customer that is a multinational company with a strong balance sheet that we believe has the ability to quickly develop projects".
ABOUT ALTER NRG
Alter NRG provides alternative energy solutions to meet the growing demand for environmentally responsible and economically viable energy in world markets. Alter NRG's primary objective is to further commercialize the Westinghouse Plasma Gasification Technology, through its wholly owned subsidiary, to provide renewable and clean energy solutions from a wide variety of feedstocks, and provide a wide variety of energy outputs - including liquid fuels like ethanol and diesel, electrical power, and syngas.
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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, this new release contains forward looking statements pertaining to capital expenditures, schedules and commencement of operations of existing projects and projects under development; availability of project financing; timing of sales; industry trends; factors influencing capital investments and development activities; the Corporation's reputation and market position within the industries in which it operates and the Corporation's strategy and competitive advantages. 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; failure of POSCO ICT to make its license payments; unforeseen environmental effects; failure of the proposed project to proceed to completion, ability to market projects effectively, arrangements with key suppliers; potential product liability and other claims; risks associated with the proprietary technology; closing on grants and incentives, the possible unavailability of financing at competitive rates and the related effect on development activities; 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 Company's Annual Information Form dated March 29, 2010 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:
Walter Howard, Chief Executive Office
(403) 806-3877 firstname.lastname@example.org
Daniel Hay, Chief Financial Officer
(403) 214-4235 email@example.com