TSX - NRG
OTCQX - ANRGF
CALGARY, Sept. 23 /CNW/ - Alter NRG Corp. (TSX: NRG; OTCQX: ANRGF) ("Alter NRG" or the "Company") has expanded its activity base in North America, the United Kingdom, the European Union and Southeast Asia with further strategic partnerships and facilities being planned or engineered using the Westinghouse Plasma Corp. Plasma Technology ("Westinghouse Technology") in each region. The Westinghouse Technology which is 100% owned by Alter NRG and has been independently ranked as a leading plasma technology, is being applied for renewable and sustainable energy projects worldwide. Alter NRG is pleased to provide a strategic update in each geographic region.
Currently, the Company has 16 projects in the engineering stage and over 43 proposed projects being advanced worldwide. Proposed projects are those projects that are actively being developed by customers or strategic partners and are sourcing feedstock, site selection, key contracts and other early stage development activities. Projects in the engineering phase are those projects that are further along and are actively doing engineering work using Alter NRG under a signed engineering services agreement or a broader memorandum of understanding that is being negotiated. Upon successful development, the total revenues to Alter NRG to support the 16 projects in the engineering stage would result in over $400 million in engineering, equipment and licensing revenues.
These large scale energy projects face regulatory, financing and other execution challenges consistent with any large scale project development. For this reason, Alter NRG is focusing its efforts on experienced and capitalized strategic partners and customers. Nancy Laird, a director of Alter NRG comments that "Strategic alliances have given us the capacity to provide the international execution capability, which gives management the confidence to execute on a breadth of opportunities."
Some of our current strategic partners and customers include Fortune 500 companies such as NRG Energy, one of the largest independent power producers in the United States; Air Products, which is a leading industrial gas company that is developing renewable energy projects; as well as leading engineering companies like UHDE Shanghai, SMS Infrastructures in India and others.
Mark Montemurro, President and CEO of Alter NRG states, "This is a very exciting time for Alter NRG as we advance activities all over the world. The Westinghouse Technology continues to be the technology of choice by experienced and large scale project developers, waste and energy companies. Alter NRG continues to be a long-term value creation opportunity as large scale energy facilities have a long development cycle. However, the sales pipeline continues to mature with near-term licensing opportunities and various projects with regulatory approval that are expecting to advance into construction as early as 2010. Alter NRG remains execution focused and will continue to work with companies that provide strategic value and also are able to execute on large scale sustainable energy projects."
Representatives of the Company have travelled to China several times since February of 2009 and the Company has received significant interest in the Westinghouse Technology for the recovery of energy from both waste and biomass. The Chinese Central government has aggressive plans regarding both waste management and the use of biomass to create environmentally sustainable energy solutions. The Chinese government has pledged over $500 billion USD for this type of activity and the Westinghouse name has been a catalyst in attracting industry leading partners in the region. The Company is focusing its efforts on establishing a presence in this region.
As was previously announced on July 8, 2009, Alter NRG signed an alliance agreement with UHDE Engineering Consulting (Shanghai) Co. Ltd ("UHDE Shanghai") to provide engineering and marketing services and to jointly pursue business opportunities in the Asia Pacific region, Mexico, Central America and South America. UHDE Shanghai will license and market as well as promote the Alter NRG technology in waste to energy projects and other developments which provides Alter NRG with the experience of an industry leading engineering company that has a local presence in Southeast Asia. Though early days, the relationship has proven to be very effective and UHDE Shanghai and Alter NRG have recently submitted a commercial proposal for a large energy recovery project and also advanced detailed engineering design and 3D modeling on a waste to power combined cycle facility design.
The management of Alter NRG have met with various companies on numerous occasions in both North America and China and management has also recently toured several companies throughout the commercially operating waste to energy facility in Utashinai, Japan using the Westinghouse Technology. Management is currently actively negotiating with several companies regarding strategic alliances which will be broad based and expected to provide for significant commercial activity in the area. This includes a signed letter of intent which is currently being negotiated into a definitive agreement that is a broad license for biomass in China that includes an upfront license fee and the construction of multiple facilities.
Richard Fish, Chief marketing and Sales Officer of Alter NRG states that "The potential for sustainable energy using the Westinghouse Technology is significant. Currently, Alter NRG is focused on finding the right partner and business structure that will provide for near term cash flows through upfront license fees. Alter NRG is taking a strategic licensing approach that will also protect the Westinghouse Technology intellectual property over the long-term. We anticipate announcements of additional strategic relationships in the coming months."
Alter NRG is also pleased to announce that a hazardous waste to energy facility located in Pune, India, as was previously announced in quarterly and annual reports, has been successfully commissioned and is now operating commercially using the Westinghouse Technology. The facility was constructed by SMS Infrastructures, Central India's largest engineering company, who also has begun construction on their second facility using the Westinghouse Technology. This is the world's largest plasma hazardous waste facility in operation and provides another commercial example of the Westinghouse Technology creating energy from hazardous waste streams such as paint residues, industrial adhesives, solvents, etc.
In addition, the Company also has 8 projects in Southeast Asia that are being planned by experienced developers using the Westinghouse Technology. As well, the relationships in Southeast Asia with UHDE Shanghai and fabricators is expected to reduce the overall capital costs related to engineering and procurement for projects in other areas of the world and to also enhance the economics for our customers worldwide.
Alter NRG began actively marketing in the United Kingdom in early 2009 and this market has had quick acceptance of the Westinghouse Technology. The United Kingdom has aggressive targets for reduction of waste from landfills and recovering energy from waste. The governments have implemented renewable credits and landfill taxes which materially enhances the economics of energy from waste projects. Plasma gasification being an efficient energy from waste solution is expected to qualify for double "renewable origin certificates" which further enhances already sound project economics.
Alter NRG has begun preliminary engineering for its customers on three separate large scale projects in the United Kingdom. In addition, there are several UK based engineering, waste and project development companies with whom Alter NRG is conducting due diligence activities.
Kevin Willerton, VP Strategic Alliances for the region states, "There is significant activity in the United Kingdom and demand for our industry leading Westinghouse Technology. The regulatory regime is very supportive of our technology and we expect that our customers in this region will continue to quickly advance projects. Furthermore, we expect to finalize strategic licensing agreements in the next six months with other strategic partners that are leaders in their industry and have the capability to execute."
The European Union has stringent policies mandated for its member states that include significant landfill diversion targets and using waste and biomass as renewable energy sources. Alter NRG began focused sales and marketing in the European Union in Q1 of 2009 and this activity is leading to significant opportunities throughout the European Union.
In Spain, two projects are advancing and are in the engineering phase. Westinghouse Technology is being considered as the technology provider in both projects. One of the projects has regulatory approval and the other is submitting its regulatory application. Of the two projects, one was scheduled to use a competing technology and is now planning to use the Westinghouse Technology. The project with regulatory approval is expected to begin construction in 2010 and would represent an approximate $10 million technology sale upon successful development.
Alter NRG is also advancing discussions with both private and State owned companies in the former Eastern Bloc. The European Union is investing infrastructure development funds into these countries who are significantly behind on their mandated use of renewables (including waste) and also landfill diversion targets. The Company has just signed a front end engineering contract with one large company and continues to advance discussions on a variety of projects and potential broader relationships with State owned companies looking for renewable solutions to avoid sanctions and penalties.
In aggregate, there are a total of 9 projects currently being planned in the European Union (including Russia), of which 3 are in the engineering phase.
In North America, activities are progressing on a second generation ethanol solution, a smaller scale energy from waste facility, and numerous projects in various stages of development. NRG Energy is a leading independent power producer in the US that is currently advancing 7 projects in the United States, including a project in Somerset Massachusetts with regulatory approval. In a recent article Senior Vice President Robert Henry stated, "Somerset would be the first of the company's 40 sites retrofitted for the plasma gasification process."
In Somerset, Massachusetts, NRG Energy has received regulatory approval for a facility greater than 100 MW to be repowered using the Westinghouse Technology. The repowering project takes a pulverized coal combustion facility and Senior Vice President Bob Henry recently stated that "The gasification process allows for a 95 percent reduction in both mercury and sulfur dioxide emissions and a 60 percent reduction in nitrogen oxide. The biggest selling point is that the government wants us to generate 20 percent of our energy from renewable sources by 2020 and with this plan we'd be able to be at that on day one, even ten years before we have to." The project also blends biomass with the coal to reduce the overall carbon footprint. NRG Energy is currently advancing project financing discussions under the US Department of Energy ("DOE") loan guarantee program and also working through permitting challenges with local dissenters to the project. This project represents a $40 to $60 million engineering and equipment sale to Alter NRG and NRG Energy expects equipment will be ordered in 2010 based on public materials.
NRG Energy has also responded to a request for proposal for an energy from waste facility in Taunton, Massachusetts. Local officials from Taunton recently toured the commercial facility in Utashinai Japan, which has been in operation using Westinghouse Technology for over 6 years. NRG Energy is also advancing 5 other projects at this time including another project which is currently preparing a regulatory application.
As was previously announced on April 25, 2009, "Project Lighthouse" is an approximate 40,000 gallon-per-year cellulosic ethanol plant which converts non-food biomass into ethanol and is located at the Westinghouse Plasma Corp. gasification facility in Madison, Pennsylvania. The existing Westinghouse Technology plasma gasification system has begun commissioning and is expected to convert waste biomass in its existing gasification reactor to provide clean, cool, pressurized syngas to Coskata this Fall. The syngas is the energy source of Coskata's FlexEthanol conversion process. This approximate $25 million semi-scale facility constructed by Coskata will increase the utilization rate of the Westinghouse plasma gasification facility and is anticipated to provide approximately $2.5 to $3.0 million in facility rental revenue to the Company during 2009 and 2010. Coskata has also engaged Alter NRG for preliminary engineering on their first full commercial scale facility which would represent an approximate $50 million sale upon successful development.
In May of 2009, Alter NRG was selected to operate and construct an energy from waste project in Dufferin County, Ontario. Dufferin County is providing a site for the facility and a long-term feedstock agreement for their waste. The project is in early stages of development and has an expected capital cost of $30 million. The financing is expected to be in the form of government grants and incentives, municipal and other debt as well as partner equity contributions which Alter NRG does not intend to invest significant funds into the project. The capital contribution by Alter NRG is expected to be recovered on the project through margins from engineering and equipment sales.
In aggregate, there are 23 projects proposed in North America including 10 in the preliminary engineering stage, including one project with regulatory approval and one project currently preparing a regulatory application.
The overall demand for sustainable energy solutions continues to grow with programs and legislation being enacted that support this activity worldwide. In the United States, this includes the Waxman-Markey legislation which currently includes both waste and biomass credits, current DOE loan guarantee programs and other State grants, incentives and credits for sustainable energy. Similar programs and incentives exist worldwide and the Westinghouse plasma technology is being sought out by industry leading companies. The sales pipeline of opportunities continues to mature including near-term licensing and partnership opportunities in various geographic areas. Alter NRG has approximately $38 million cash, strong strategic partners and a leading technology that positions the Company well for growth opportunities in the expanding alternative energy market.
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 commercialize growth technologies through developing environmentally sustainable and economically viable alternative energy projects. The Company's objective is to further commercialize the Westinghouse Plasma technology, a wholly owned subsidiary, to provide renewable and clean energy solutions from a wide variety of feedstocks, and providing a wide variety of energy outputs - including liquid fuels like diesel, and ethanol, power, and syngas.
View the Corporate Presentation at www.alternrg.com
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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, 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 Annual Information Form dated March 31, 2009 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.
SOURCE Alter NRG Corp.
For further information: For further information: Mark Montemurro, President and Chief Executive Officer, (403) 806-3877, firstname.lastname@example.org; Daniel Hay, Chief Financial Officer, (403) 806-3881, email@example.com