Alter NRG reports first quarter 2010 activities and financial results

TSX - NRG

OTCQX - ANRGF

CALGARY, May 10 /CNW/ - (TSX - NRG; OTCQX - ANRGF) - Alter NRG Corp., ("Alter NRG" or the "Company") is pleased to report on its corporate activities and financial results for the three month period ended March 31, 2010.

Q1 HIGHLIGHTS

Alter NRG provides clean energy solutions that are economically viable and environmentally sustainable. It operates through two wholly owned subsidiaries:

Westinghouse Plasma Corp. ("WPC") - the industry leading plasma gasification technology that provides clean and renewable energy solutions from waste and biomass and converts it into syngas, electricity or ethanol. This is a commercially proven technology with facilities turning household waste into energy since 2002.

Clean Energy Developments ("CleanEnergy") - an industry leading geoexchange company that provides heating and cooling for homes and commercial buildings using free energy from the earth. This is a solution that is used extensively in Europe as it reduces the use of fossil fuels for heating and cooling by up to 80%.

Westinghouse Plasma Corporation

    
    -   Started operations at the WPC plasma gasification facility to provide
        clean syngas to the adjacent cellulosic ethanol conversion facility
        operated by Coskata. Project Lighthouse is Coskata's semi-commercial
        cellulosic ethanol facility plant that converts syngas (provided by
        the Westinghouse plasma gasification process) into ethanol.

    -   Advanced engineering services and agreements on Coskata's first
        commercial facility, Project Flagship, which is expected to be
        a 50 to 60 million gallon per year ethanol facility. Alter NRG
        expects this facility to generate approximately $50 million in
        engineering services and equipment sale revenues upon completion.

    -   Advanced 20 projects located worldwide which are in the engineering
        stage of project development with a total sales pipeline of over
        $500 million upon successful development.A total of 45 proposed
        projects are being advanced worldwide with Westinghouse plasma
        technology.

    -   Progressed discussions in China with strategic partners advancing
        waste and biomass clean energy projects. Signed an agreement with
        Wuhan Kaidi Holding Investment Co., Ltd. ("Kaidi") to construct a
        demonstration facility. In the future, Kaidi plans to develop up to
        150 biomass-to-energy projects in the Chinese market. The interest in
        China for the Westinghouse technology has been significant as the
        government is promoting renewable energy solutions.

    -   Furthered discussions in the European market with credible companies,
        respected engineering firms and governments that are looking for
        renewable energy alternatives. The European market has very favorable
        incentives and having operational facilities since 2002 and 2003
        using our Westinghouse technology has been a benefit.
    

CleanEnergy Developments

    
    -   Current backlog and expected orders in geoexchange installations for
        CleanEnergy is over $9 million, including those of Groundheat.
        CleanEnergy is focusing on larger scale commercial jobs and has
        closed the two largest geoexchange installations contracts to date: A
        pool complex in Cambridge, Ontario for approximately $550,000; and
        for a condominium complex for $650,000.

    -   Announced a strategic agreement with WaterFurnace Renewable Energy,
        Inc. (TSX:WFI) to expand CleanEnergy's exclusive region of
        distribution of WaterFurnace's Geostar branded heat pump product in
        Canada.

    -   Announced the acquisition of 35% of Groundheat International Inc.
        (Groundheat) for $2.3 million ($1.85 million in cash and
        $0.45 million contribution of its current drilling rig assets).
        Groundheat will provide additional geoexchange drilling execution
        capability in the southern Ontario market. The Remington Group will
        own 50% of Groundheat and will work closely with CleanEnergy on
        effectively penetrating the geoexchange market. The Remington Group
        is a leading commercial developer in the Ontario market and is
        currently intending on installing geoexchange in numerous
        developments totaling approximately $15 million over the next
        2 years.

    -   Announced an exclusive agreement with Ice Kube Systems Ltd. ("Ice
        Kube") which provides exclusive distribution rights for geoexchange
        equipment for hockey rinks, curling arenas, and leisure centres in
        British Columbia, Alberta, and Atlantic Canada and non-exclusive
        rights in Ontario.

    -   Expanded CleanEnergy's operational capacity in Western Canada through
        a strategic agreement with Geowest Drilling Services Ltd. (Geowest),
        a drilling company located in Calgary, Alberta. Under the agreement
        Geowest will provide dedicated service for CleanEnergy geoexchange
        projects using its drilling rig as well as drilling supervision.

    -   Appointment of Bruce Buchholz as Chief Operating Officer.
    

Corporate

    
    -   Added Joe Schwager as a director elect. Joe is the Founder and
        Managing Director of Juniper, a consultancy that has established
        itself over the last 18 years as the leading independent analyst of
        novel waste processing technologies, assessing their capabilities and
        limitations and their impact upon market dynamics internationally.
        Through this advisory work he has developed a unique perspective on
        the competitive landscape and the direction of government policy, not
        least in the UK, Ireland and Continental Europe; but also in emerging
        markets, such as Australia.
    

For more information on the Company's activities please visit www.alternrg.com or www.sedar.com to view Alter NRG's 2010 First Quarter Report.

PRESIDENT'S MESSAGE

We expect 2010 to be a break out year for both plasma gasification and geoexchange; we are dedicated to growth in the short-term. This includes near-term sales in plasma and increasing revenues in geoexchange which are illustrated in this Q1 report.

At Westinghouse Plasma we are very pleased with the progress at Project Lighthouse. As announced in January 2010 we are successfully providing clean syngas to the adjacent cellulosic ethanol conversion facility operated by Coskata, Inc. (Coskata) Because of the work on this project, we are creating syngas with greater confidence and are continuing to advance operating procedures and our understanding that will translate into improved capital and operating costs as well as equipment performance. Project Lighthouse has attracted international interest from leading energy companies and developers from around the world as evident in the strong partners Coskata has realized through its successful financing efforts. We are also committed and supportive of the plans by Coskata to initiate construction of a commercial plant as early as Q4, this year.

While we have followed a conscious strategy to avoid saying too much too soon about our plasma developments which can take years to conclude, our Shareholders can be assured that developments are progressing on many fronts and on the three continents of focus. Our efforts in the plasma space are ongoing and will form a large part of 2010 activity and growth.

Thomas Edison said that "opportunity is missed by most people because it is dressed in overalls and looks like work." This couldn't be truer when talking about the development of plasma gasification projects. In comparison to other more 'conventional' alternative energy projects such as wind and solar energies, the development of plasma gasification projects is longer because it is in the early stage of market acceptance and commercialization. Despite the longer development time that we are experiencing we know that the opportunities that come from commercializing our plasma gasification technology are tremendous and are pleased with the continued progress we are making with a variety of customers.

At the Board level we have strengthened our industry expertise and will benefit from the wealth of knowledge, industry contacts and experienced perspectives on how to successfully compete in the waste-to-energy market through the addition of Joe Schwager as director elect. Joe is the founder and managing director of Juniper, a consultancy that established itself as the leading independent analyst of novel waste processing technologies and their impact upon market dynamics internationally.

At CleanEnergy, much of the first quarter has been spent developing staff, creating strategic relationships and building a backlog of sales. I personally am pleased to have appointed Bruce Buccholz, an experienced senior executive in our market as Chief Operating Officer.

We have undertaken initiatives aimed at increasing our presence in the geoexchange market, expanding capacity and consolidating our position. Through an agreement with WaterFurnace Renewable Energy, Inc. we have expanded our exclusive region of distribution of WaterFurnace's Geostar branded product; increased our access to drilling equipment through a strategic arrangement with a leading geoexchange provider in Western Canada and; have obtained access to Ice Cube's industry leading geoexchange equipment through which CleanEnergy has exclusive access for the majority of Canada for the production of ice for hockey or curling rinks.

We are excited about what we are seeing and consequently are very bullish in the geoexchange segment. As part of our corporate strategy we have sought opportunities that allow us to grow our geographical footprint and expand the suite of services we are able to offer. Our strategy of identifying companies to bring into the Alter NRG fold has brought us to the minority acquisition of Groundheat International Inc. which closed April 21st. Groundheat is a quality partner with a strong commercial presence in Toronto (the majority working interest partner is The Remington Group). It is a very timely acquisition which strengthens our efforts in the Greater Toronto Area and leaves us confident that we are able to meet and potentially exceed our 2010 revenue projections.

As has been popularly quoted "the test we must set for ourselves is not to march alone but to march in such a way that others wish to join us." We will stay true to this test and remain committed to our shareholders and our global community's best future interests.

SELECT FINANCIAL RESULTS ($)

    
                                          March 31, 2010      March 31, 2009
    -------------------------------------------------------------------------

    Total assets                           $  99,667,909       $ 120,665,217
    Total liabilities                         19,587,652         26,738,385
    Total equity                              80,080,257         93,926,832
    -------------------------------------------------------------------------

                                      Three months ended  Three months ended
                                          March 31, 2010      March 31, 2009
    -------------------------------------------------------------------------

    Revenue, interest and other income     $   1,940,800       $   1,250,464
    Loss                                      (4,925,755)         (2,945,549)
    Loss per share - basic and diluted             (0.08)              (0.05)
    -------------------------------------------------------------------------
    

For more information on the Company's financial results please visit www.alternrg.com or www.sedar.com to view Alter NRG's 2010 First Quarter Report.

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: 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 29, 2010 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, mmontemurro@alternrg.ca; Daniel Hay, Chief Financial Officer, (403) 214-4235, dhay@alternrg.ca

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