CALGARY, Feb. 19 /CNW/ - Alter NRG Corp. ("Alter NRG" or the "Company")
is pleased to announce that it has selected KBR Inc. ("KBR") to provide
engineering services for the Fox Creek Coal to Liquids project ("Project").
KBR has also expressed interest in becoming an investor into the Project at a
later stage of development through its Venture Business Unit. Alter NRG
remains committed to advancing Canada's first Coal to Liquids ("CTL") with
carbon dioxide ("CO(2)") capture Project that will provide a clean energy
solution for alternative oil production.
With this announcement, Alter NRG has engaged KBR to prepare a detailed
study of the capital costing, and advancement of technology selection for the
Project. KBR may continue its participation with follow-on front end
engineering design, performance of detailed engineering, procurement and
construction, performance of operations and maintenance services and further
may potentially license KBR technology for the Project.
Mark Montemurro, President and CEO of Alter NRG commented, "We are
excited to be working with an industry leading engineering firm like KBR as a
core service provider and potentially also as a technology provider. Having a
world-class engineering firm engage its full design and operation capacity for
this study illustrates the Fox Creek project's potential.
John Quinn, president of KBR's Downstream business unit, stated "The Fox
Creek project is an exciting opportunity for KBR to utilize its diverse skills
and help to develop a world class project. The project has many unique
positive attributes such as proximity to infrastructure, access to a large,
low cost coal, and CO(2) sequestration for enhanced oil recovery in the
As disclosed in the public disclosure document on July 21, 2008, Alter
NRG holds a 468 million tonne coal reserve which translates into approximately
700 million barrels of recoverable liquid fuels through gasification. Alter
NRG has ownership of the coal and the ability to add value to the shareholders
both through a carried interest in the project and through a future royalty on
the coal reserve. This value can be created with or without a significant
capital investment by Alter NRG.
Further details on the Project are outlined below and readers are
directed to a copy of the Public Disclosure Document which can be found on the
Alter NRG website at www.alterNRG.ca or on SEDAR at www.sedar.com, and which
contains important assumptions, limitations and other information.
ABOUT THE PROJECT
The Project will involve the extraction of Alter NRG's Fox Creek coal
resource and through gasification and other processes will produce diesel fuel
and naphtha. Alter NRG's coal reserve contains enough coal to produce 40,000
barrels per day of liquid fuels, such as diesel, for over 50 years. The
Project is located approximately 27 km northeast of the Town of Fox Creek,
Alberta, approximately midway between Edmonton and Grande Prairie. Alter NRG
holds the lease to four crown coal resources located to the north of Fox Creek
township and has ownership of 468 million tonnes of proven plus probable coal
reserves and 876 million tonnes of coal resource (both reports have been
previously released on December 17, 2007 and are filed on SEDAR).
KBR is a global engineering, construction and services company supporting
the energy, petrochemicals, government services and civil infrastructure
sectors. KBR Engineering is a world leading engineering company employing over
50,000 people worldwide with significant expertise in gasification and liquids
The company offers a wide range of services through its Downstream,
Government and Infrastructure, Services, Technology, Upstream and Ventures
business segments. For more information, visit www.kbr.com.
ABOUT ALTER NRG
Alter NRG is pursuing alternative energy solutions to meet the growing
demand for environmentally responsible energy in world markets. The Company's
vision is to be a senior energy producer by becoming the world's leading
supplier of gasification technology and developing environmentally sustainable
and economically viable projects. The Company's objective is to provide
renewable and clean energy solutions from a wide variety of feedstocks, and
provide a wide variety of energy outputs - including hydrogen, liquid fuels
like diesel, ethanol, power, and syngas.
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: the timing and amount of estimated
production; ability to finance the project, costs of production; capital
expenditures; construction time lines; currency exchange rate fluctuations;
environmental risks; unanticipated reclamation expenses; risk of obtaining
regulatory approvals; engineering and design risk; fluctuation in commodity
prices, operational challenges 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. It is important
to note that at this preliminary stage, no assurance can be made that the
Company will be able to raise the required funds or that KBR will actually
participate in the Project.
The Company 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 Company 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.
For further information:
For further information: Mark Montemurro, President and Chief Executive
Officer, (403) 806-3877, Mmontemurro@alterNRG.ca; Daniel Hay, Chief Financial
Officer, (403) 806-3881, Dhay@alterNRG.ca