TSX - NRG
OTCQX - ANRGF
CALGARY, March 21, 2013 /CNW/ - (TSX - NRG; OTCQX - ANRGF) - Alter NRG Corp., ("Alter NRG" or the "Corporation") is pleased to
report on its corporate activities and financial results for the fiscal
year ended December 31, 2012
Sales of $13.7 million which is an increase over prior year of 104%.
Revenue is expected to continue to increase in 2013 as the pace of
fabrication increases on the facilities under construction, follow-on
projects begin engineering and construction, as well as further
Executed on approximately 61% of the $20 million purchase order from Air
Products a US based Fortune 500 Company, which has previously announced
its intention to build four additional advanced gasification facilities
in the United Kingdom in the coming years. On October 23, 2012 Air
Products announced it is advancing a second project on adjacent lands
in Tees Valley of the same size and configuration as the first project.
Wuhan Kaidi ("Kaidi"), which ordered engineering and torches previously,
completed construction of its demonstration facility in China for which
the Westinghouse Plasma Gasifier has now been commissioned. The
facility is expected to take 100 tpd of biomass waste and convert it
into liquid fuels. Upon successful demonstration (expected in early
2013), Kaidi has more than 100 sites identified to take biomass and
convert it into power and liquid fuels.
Signed an agreement to provide $12 million of Westinghouse Plasma
Torches to Beijing Huanyu Guanchuan Plasma Technology Ltd.
("GuanChuan"). GuanChuan has ordered the first four torches for an
approximate $1 million order to be delivered in early 2013. GuanChuan
is using the torches for their industrial furnace applications related
to the steel and iron industry in China.
Advanced project development with a developer, PGP Terminal a.s.
("PGPT"), which previously purchased site licenses in the Czech
Republic and Slovakia for $4.375 million, with 10% being paid up front.
The developer has been working for several years on waste-to-energy
projects and has a portfolio of projects that it is currently advancing
in their home market. They expect to begin engineering on the first
facilities in early 2013 with the intention of ordering equipment in
late 2013 or early 2014.
Finalized scope with SMS Infrastructure ("SMS") (who has already
constructed two hazardous waste facilities utilizing Westinghouse
Plasma technology) on two projects which have advanced into the formal
regulatory approval phase with an expected plasma gasifier order in
2013. These are the more advanced projects within a larger pipeline of
projects which SMS is developing and marketing in India and the Middle
East. SMS is a licensee of the Westinghouse Plasma Gasification
Technology and provides turnkey hazardous waste facilities to the
market and has approximately 140 people in their gasification division.
Supported a hazardous waste demonstration facility in Shanghai China
being constructed by GTS Shanghai. We have previously delivered the
detailed engineering and torches, however, during the year they ordered
additional equipment for their facility which will be delivered in
2013. The facility has finalized its feedstock agreement with a large
Chinese waste company and its site location and they are advancing the
With the introduction of Walter Howard as the newly appointed Chief
Executive Officer in Q1 2012, the Corporation began creating a
structure for its investment options in current projects, to provide a
more formal funding structure for the following investment options.
Alter NRG has options to invest with key customers, including Air
Products, which allow the Corporation to elect on the option after the
project receives regulatory approval but without any promoted costs.
This is a favourable option for the Corporation as it does not have to
deploy the risky development capital but can participate in the project
level annuity cashflow after the project has been de-risked.
In addition to the highlights above, customers around the globe continue
to advance their business development efforts using the Westinghouse
Plasma Gasification Solution. This includes exclusive license
agreements for territories that are in advanced negotiations.
Closed the sale of CleanEnergy, the Corporation's geoexchange division,
for $5 million of shares so that the Corporation could focus
exclusively on the plasma gasification business.
Announced the addition of a strategic shareholder, Ervington Investments
Limited ("Ervington"), which is a company that has Roman Abramovich, a
wealthy Russian businessman, as its ultimate beneficial owner.
Ervington has complementary investments in the waste-to-energy space
and has the potential to be part of a larger group that will finance
various waste-to-energy projects. The financing, led by Ervington, was
for 34.2 million shares at a price of $0.325 for a total investment of
For more information on the Corporation's activities please visit www.alternrg.com or www.sedar.com to view Alter NRG's 2012 Annual Report.
A year after taking the helm at Alter NRG I am very pleased with where
we are today, and with the future of the Company. Currently, there are
three Westinghouse Plasma Gasification facilities under construction or
commissioning, we have attracted the attention of industry leading
industrial and engineering companies worldwide, and we have
strengthened our balance sheet with a strategic long-term investor. We
exit 2012 as a strong Company which includes great people, a
world-leading technology and a strong customer base - we are well
positioned for continued growth and increasing profitability.
In my career, I have been involved in a handful of tipping point
technologies. These are technologies that were poised to change the
current paradigm - to make things better and more efficient. This was
true of other energy technologies with which I have been involved in
bringing to industry-wide acceptance. While recognizing that the
adoption time for revolutionary approaches is not measured in weeks or
months, I believe that our Westinghouse Plasma Corp. technology has
passed the tipping point - it genuinely is world class and can change
the face of the waste disposal industry.
Late last year we announced the sale of a full-scale gasifier to a large
Fortune 500 Company that will produce 50 Megawatts of electricity; a
major commercial tipping point. The Tees Valley project is providing us
the opportunity to substantiate our technology and engineering in a
very big way - not only to Air Products and Chemicals, but to the
industry as a whole. It is a paradigm shifting project in many ways as
it is more energy efficient than current waste treatment methods, has a
much better environmental footprint as well as being at significantly
larger scale than previous plasma gasification facilities.
This project has provided the breakthrough which has brought us many
opportunities that we intend to translate into shareholder value in the
coming years. We are the clear industry leader providing a solution to
both large-scale waste management challenges, and also our increasing
need for energy. The good news is that large, capable companies are
actively seeking out our technology. That is tempered by the reality
that these are long lead time projects and will take time to develop.
Therefore, the fact that we are past a tipping point will be most clear
in hindsight in coming months.
This point was not just reached by a single project. The success story
is supported by 20 years of innovative thinking, R&D and hard work by
many people inside of Westinghouse, and also Alter NRG. Our commercial
facilities in Japan and India are a crucial part of that history and
continue to play a vital role in our advancement. We continue to take
potential customers to these facilities so they can witness firsthand
the technology in action, however, the customers today are much more
sophisticated and well-funded than before. Our strategy is to continue
to partner with companies that have the proven capability and the
capital available to execute. We are pleased that many of them have
invited us to co-invest in the projects. It is outstanding progress to
have three facilities under construction simultaneously and speaks
volumes as to how this technology is penetrating the waste to energy
market. Two new facilities are currently under construction in China
(both with numerous follow-on opportunities), two additional facilities
are now in regulatory approvals in India by our strategic customer in
that jurisdiction, and our Fortune 500 partner in England has announced
its second project going into its regulatory process. We are past the
point of widespread acceptance, and are now adding to our list of
capable strategic customers.
Part of our growth will be co-investment into projects that are being
developed by capable partners and have strong financial returns. As an
innovative and paradigm changing technology, most developers welcome
the core technology provider as a project owner. However, we are not
the developer - that is a time-consuming and often expensive process
best left to larger institutions and specialized local teams. We have
options to invest alongside the developer once the projects have
achieved their major commercial milestones including regulatory
approvals. My history of financing energy projects tells me this is an
area where we can add significant shareholder value.
The Westinghouse Plasma Technology has passed the commercial tipping
point making me confident that we will execute on significant
commercial contracts in 2013. Worldwide, energy and waste management
solutions are in demand; critical demand in some cases and with a
disciplined approach Alter NRG is uniquely positioned to grow and be
successful, and to build value for our shareholders. We are charting a
path to success for our company, our customers and our shareholders.
SELECT FINANCIAL RESULTS ($)
December 31, 2012
December 31, 2011
For the Year Ended
For the Year Ended
December 31, 2012
December 31, 2011
Loss from continuing operations
Net loss from discontinued operations
Basic and diluted loss per share - continuing
Basic and diluted loss per share - discontinued
As at and for the years ended December 31, 2012, the Corporation had
losses of $11,107,026 positive cash flows from operations of $400,463
and had an accumulated a deficit of $103,045,714 (year ended December
31, 2011 - $20,748,825, $(8,507,926) and $91,938,688 respectively).
Management is developing new sustainable energy solutions which is a
long-term process and recognizes that the Corporation must generate
positive cash flows or secure additional financial resources in order
to meet its liabilities as they come due and to enable the Corporation
to continue operations.
For more information on the Corporation's financial results please visit
www.alternrg.com or www.sedar.com to view Alter NRG's 2012 Annual 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: availability and cost of key materials and labour and
availability of funds with respect to the amount of capital
expenditures and scheduled commencement of operations; timing of
regulatory approval including various permits from the applicable
government authorities; the assessment of capital markets including the
availability of debt and equity in current market conditions; commodity
prices for electricity, natural gas, coal and other resources that
impact the Corporation's operations directly and indirectly; extent of
investment by government authorities in infrastructure projects; the
financial and operational health of key partners in various projects;
the continued development of the Corporation's technology and its use
in various applications 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
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; unforeseen environmental effects; the completion of
strategic partner's projects; arrangements with key suppliers;
potential product liability and other claims; other business risks
outlined in this news release, including risks associated with the
proprietary technology; the possible unavailability of financing at
competitive rates and the related effect on development activities; the
effect of energy price fluctuations; 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 Corporation's Annual Information Form dated March 28,
2012 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 Officer
(403) 806-3877 firstname.lastname@example.org
Daniel Hay, Chief Financial Officer
(403) 214-4235 email@example.com