Alter NRG Corp. announces the finalization of the plant siting for the first Integrated Gasification Combined Cycle (IGCC) power facility in Canada



    TSXV - NRG

    CALGARY, Sept. 15 /CNW/ - Alter NRG Corp. ("Alter NRG" or the "Company")
is pleased to announce that it has closed the previously announced acquisition
of a project site in Bruderheim, Alberta (approximately 60 kilometers
northeast of Edmonton) for $3.1 million, including $0.6 million in costs
related to settlement of existing transmission commitments. The Company plans
to use the site to develop Canada's first IGCC facility with the first phase
to be operational as early as 2010. On commencement of operations, the
facility is expected to be capable of producing approximately 120 megawatts
(MW) of electric power using a blend of natural gas as well as synthesis gas
(syngas) produced using Alter NRG's proprietary plasma gasification
technology. The facility will be designed for carbon capture and storage (CCS)
with approximately 600,000 tonnes per year of captured CO2 to be injected into
nearby geological formations or used at nearby oilfields in enhanced oil
recovery (EOR) projects.
    "We are excited to advance a project that will help to redefine emissions
from fossil fuel power generation while retaining a low cost structure." said
Mark Montemurro, Alter NRG President and Chief Executive Officer. "For our
shareholders, this represents a project that utilizes our proprietary plasma
gasification technology, which has the potential for strong returns and will
be operated by Alter NRG in our home market."
    The project is expected to be completed in two phases in order to take
advantage of near-term capacity needs in the Alberta power market. The first
phase of the project will use natural gas as a feedstock while the second
phase of the project will replace the majority of the natural gas with syngas
that can be produced for less than $3.00 per Gigajoule (GJ).
    Development of the first phase of the project has already commenced with
the intention of having the 120 MW natural gas combined cycle (NGCC) facility
operational by early 2010. NGCC facilities are the cleanest fossil fuel power
generation technology available today.
    The capital cost for phase one is approximately $130 million and the
Company has already purchased a steam turbine and identified gas turbine
equipment to purchase. The regulatory process is underway, as regulatory
permitting is critical for early implementation of the first phase. The
Company expects timely issuance of the required permits.
    The second phase of the project will use petroleum coke and oilfield
waste, which are both available in the nearby area, to create syngas using the
Alter NRG proprietary gasification system. The syngas will replace the
majority of the natural gas as a fuel for the generation of electricity. Phase
two will reduce the input costs of the natural gas in addition to creating
additional revenue streams through oilfield waste tipping fees and the sale of
CO2. The project is expected to have total operating costs, net of the
by-product revenues, of approximately $30 per Megawatt hour (MWh).
    The capital cost for the second phase of the facility is expected to be
approximately $350 to $400 million, which represents a total project capital
cost of less than $20 per MWh over the facility's 30-year expected life. With
an overall cost structure of less than $50 per MWh, this IGCC project
represents a solid investment in an Alberta power market where average prices
to date in 2008 have been $88.75 per MWh. As well, independent forecasts
indicate prices in excess of $95 per MWh from 2010 onwards when the facility
is expected to be operational.
    The Bruderheim facility will capture up to 90% of the CO(2) produced by
the plasma gasifier (up to 1,700 tonnes per day) which is expected to be sold
to oilfield producers in the nearby area for EOR. The project's carbon
emissions profile will be similar to that of a NGCC facility, representing the
best available emissions level from fossil fuel power generation. The Alberta
government recently established a $2 billion fund for CCS and EOR projects
which is indicative of the government support for climate change initiatives
to significantly reduce greenhouse gas emissions, for which Alter NRG has
submitted a funding proposal.
    The Company is anticipating preliminary project returns of approximately
15% or greater based on current independent market price forecasts and
independent capital cost estimates. The Company will be advancing a partner
selection process over the coming months. Alter NRG intends to finance its
working interest in the first phase of project through a structured debt
facility and the Company's existing cash reserves.

    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 become a leader in the development of innovative gasification
projects for the commercial production of energy. The Company's objective for
the next decade is to utilize our commercially proven plasma gasification
technology to become a senior energy producer of hydrogen, syngas, and
transportation fuels (diesel, naphtha, ethanol, etc.), steam and electricity,
all of which are fundamental products for the world's growing energy needs.

    
    The TSX Venture 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: currency exchange rate fluctuations;
environmental risks; unanticipated reclamation expenses; ability to finance;
risk of obtaining regulatory approvals; ability to find joint venture
partners; engineering and design risk; fluctuation in commodity prices 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 are based on current expectations,
estimates and projections that involve a number of risks and uncertainties
including but not limited to:, unexpected events during construction, and
start-up; variations in feedstock grade,; delay or failure to receive board or
government approvals; timing and availability of external financing on
acceptable terms; conclusions of economic evaluations; changes in project
parameters as plans continue to be refined; future prices of commodities;
failure of plant, equipment or processes to operate as anticipated; delays in
the completion of development or construction activities, as well as those
factors discussed in or referred to under the heading "Risk Factors" in the
Company's Prospectus dated April 10, 2007 available at www.sedar.com which
could cause actual results to differ materially from those anticipated and
described in the forward-looking statements. 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 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; Media Relations, Shauna MacDonald,
(403) 538-5645, smacdonald@brooklinepr.com

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Alter NRG Corp.

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