TSX - NRG
OTCQX - ANRGF
CALGARY, June 13, 2011 /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 three
month period ended March 31, 2011.
Alter NRG provides clean and renewable energy solutions that are
economically viable and environmentally sustainable. It operates two
wholly owned subsidiaries which are both positioned for significant
Westinghouse Plasma Corp. ("Westinghouse Plasma") - the industry leading plasma gasification technology that provides
clean and renewable energy solutions by converting all types of waste
and biomass into high value energy - like electricity, ethanol or
syngas for industrial use. With plasma systems in operation for 20
years and converting waste into energy since 2002, this technology is
commercially proven and has lower emissions than conventional energy
Clean Energy Developments ("CleanEnergy") - the Canadian industry leading geoexchange company that provides
heating and cooling for homes and commercial buildings using 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%. In a highly fragmented Canadian market, CleanEnergy provides
complete design and build solutions for commercial projects and also
equipment sales through its dealer network across Canada.
Fox Creek Coal Assets ("Fox Creek") - Alter NRG has acquired one of the largest contiguous deposits of surface
mineable coal, available in Western Canada (847 million tonnes). With
existing infrastructure and access to rail and ports, the Fox Creek
Coal can help fulfill the increasing demand for coal in Asia.
Alter NRG is pleased to be presenting highlights for its first quarter
of 2011 as revenues have increased by 41% over the prior year. This is
reflective of a maturing business plan with significant long-term
Advanced over 30 projects located worldwide which are in the engineering
stage of the project development with a total sales value of over $500
million upon successful development. The Westinghouse Plasma technology
has been selected in a total of over 60 proposed projects being
advanced worldwide that are in active project development by numerous
industry leading companies.
Air Products, a US based Fortune 500 company, finalized detailed
engineering for the plasma portion of the project for approximately
US$1.2 million. The project is called the Tees Valley project in
Northern England which will take 950 tonnes per day of processed
household waste and convert it into 49 MW of electricity, enough to
power over 50,000 homes. The project has commenced its formal planning
and regulatory process and is expected to begin construction in late
2011. This project represents approximately a US$30 million sale
depending upon final scope.
The St. Lucie County project is furthering the engineering for a 650
tonne per day waste-to-energy project in Florida expecting to produce
24 Megawatts of electricity. This project represents approximately a
$20 million engineering and equipment sale.
NRG Energy, a licensor of the Westinghouse Plasma technology, expanded
its portfolio of US based plasma projects to over 20 projects. This
includes a project in New Jersey which has filed for its regulatory
approval, and is advancing engineering.
Continued to provide syngas to Coskata, Inc. (Coskata) at the
Westinghouse Plasma Centre in Pennsylvania. Coskata has a proprietary
syngas to ethanol conversion technology that is using the Westinghouse
Plasma technology to create syngas from biomass and waste. The
Coskata technology has been chosen for a waste to ethanol project in
Australia that is being advanced and is expected to be a $50 million
technology sale upon successful development.
Advanced the detailed engineering and construction of a demonstration
facility under development by Wuhan Kaidi ("Kaidi") in the Wuhan
province of China. Upon successful demonstration, Kaidi has up to 150
biomass-to-energy projects which they expect to develop in the Central
China market over the next 10 years using the Westinghouse Plasma
technology. The revenue to Westinghouse Plasma is expected to be US$3
to US$10 million per facility.
Advanced the detailed engineering and construction of a second
demonstration facility in Shanghai which will be integrated with an
existing incinerator to take the incinerator ash as well as other
harder to handle feedstocks. Upon successful demonstration, the
revenue to Westinghouse Plasma is expected to be US$5 to US$10 million
per additional facility.
Advanced the second phase of initial engineering on a project in
Minnesota being developed by the Koochiching Development Authority. The
proposed project which is to be located in Koochiching County in
Northern Minnesota is called the Renewable Energy Clean Air Project.
This results in an approximate US$12 million dollar technology sale
which is expected in 2012 as well as site licenses and engineering
revenues in 2011.
Announced a sale for US$1.9 million of Westinghouse Plasma torches to be
used for metals recycling. The plasma torch market represents a
shorter sales cycle and the Company is actively working with other
customers for potential plasma torch opportunities in 2011.
Signed a license agreement in Australia and New Zealand with Moltoni
Energy for $5.75 million payable in increments over 5 years. Moltoni
Energy is a private development company with experience in both waste
and large power facilities and have a dozen planned energy from waste
projects in the region.
Began the regulatory process for the Dufferin County energy from waste
project, an approximate 6.5 MW facility.
Sales of $1.1 million for the quarter. CleanEnergy has executed on
larger scale projects in the first quarter of 2011 and successfully
positioned itself to be the industry leading commercial geoexchange
company focused on larger jobs from $0.5 million to $2.0 million and
growing. Our strengthening reputation has expanded the backlog of
sales to over $8.0 million with a strong pipeline of opportunities.
Began construction on a geoexchange installation in Truro, Nova Scotia
for $2.05 million to complete the Central Nova Scotia Civic Centre for
all aspects of the building including, making ice for the rink, heating
the pool and heating and cooling the buildings. This facility will
feature a NHL-sized ice surface with seating for 3,200 spectators. It
will also be home to an indoor aquatic centre, an exercise track, a
fitness centre, and space for events like concerts, tradeshows and
Began construction on a state of the art mental hospital in Ontario for
$1.5 million. Mental Health Centre Penetanguishene aims to achieve
Leadership in Energy and Environmental Design (LEED®) Gold
certification for the design and construction of the new facility.
CleanEnergy's geoexchange system will help the Health Centre achieve
the necessary points to reach a LEED® Gold certification.
Secured a $450,000 purchase order to provide geoexchange heating and
cooling solutions for a 72 unit senior's affordable living complex in
Completed $975,000 of drilling as part of a geoexchange solution which
provides the complete heating, cooling and ice making for a hockey rink
and sports complex in Fredericton, New Brunswick.
Completed an elementary school in Kelowna, British Columbia for
approximately $600,000, which is the first of many schools in BC that
are focusing on going green and reducing their carbon footprint using
Added a tier one Canadian bank as a partner to provide financing for the
complete geoexchange system for commercial and municipal customers.
Expanded our dealer network across Canada to 109 dealers to which
CleanEnergy distributes the Waterfurnace manufactured Geostar branded
heat pumps exclusively in Western and Central Canada. The dealer
network sells geoexchange solution to the residential market.
Fox Creek Coal
Announced the heating content of the Fox Creek coal would be 4,944
kcal/kg (8,900 Btu/lb) on a wash basis, which is similar quality to the
North American Powder River Basin coal. The Fox Creek coal asset is
847 million tonnes of measured and indicated coal resource located near
Fox Creek, Alberta. This is one of the largest exportable thermal
coal resources in the developed world. Recently, thermal coal demand
internationally, particularly in Asia, has increased, which has
resulted in higher thermal coal prices. The Fox Creek Coal has access
to rail lines and a port that are expected to have capacity to take the
coal to export markets.
Announced a strategic process with Robert W. Baird to maximize value of
our three assets which could include joint ventures, minority
investment or outright sale of the assets individually or combined.
Sold non-core assets for cash proceeds of $2.1 million.
Announced a $20 million Committed Equity Facility provided by Haverstock
Master Fund. The 24-month agreement enables the Company to receive in
aggregate $20 million through an initial $1,000,000 drawdown and up to
$500,000 per drawdown subsequently. Timing of any drawdown is at Alter
NRG's sole discretion and the Company is also able to set a minimum
price for each drawdown.
Announced the option to invest in Tees Valley Renewable Energy
Facility. The option is with Air Products and Alter NRG has an option
to invest up to 25%.
For more information on the Corporation's activities please visit www.alternrg.com or www.sedar.com to view Alter NRG's 2011 First Quarter Report.
It was an eventful quarter for Alter NRG as we began to actively explore
options that will allow the Company to fully realize the intrinsic
underlying value of our of three key assets along with the
environmental, social and economic benefits of embracing responsible,
renewable energy. When we announced in late March that we had formally
entered into an agreement to explore strategic alternatives for the
Company, we had some mixed reactions from shareholders. While some
divergent feedback is always expected and while I fully believe in the
adage that nothing would ever be accomplished if all objections must
first be overcome, we take our responsibility to our shareholders
seriously and consequently believe it is important to provide a more in
depth look into the specifics that led our decision to engage in this
Strategy, at its most basic is about using assets and neutralizing
vulnerabilities to take advantage of potential opportunity, and that in
a nutshell is what this process is about. Alter NRG is a combination of
three very unique and special assets, two of them being industry
leading clean-tech assets. Recently, we determined that our Fox Creek
asset is one of the largest exportable thermal coal resources in the
developed world. Direct comparables in the market have valuations of
$0.20 to $0.90 per tonne of resource. We have received no value in the
public markets for this resource, which alone supports our exertion
that Alter NRG is, and has been, undervalued in today's market. Given
the current global economy's interest in coal led by Asia aggressively
purchasing coal resources, combined with Fox Creek's proximity to rail
and ports that are expected to have capacity to take the coal to
market, renewed interest in Fox Creek is significant and the strategic
process is providing us the ability to explore opportunities to realize
the value of this very important asset.
Second, while CleanEnergy has established itself as the leading
commercial geoexchange solutions provider in Canada. We firmly believe
this can be a $100 million business in the next 3 to 5 years and this
is a significant market opportunity. Notwithstanding the confidence we
have that it can be profitable by the end of 2011, growing it further
will require significant reinvestment into the business for the next 2
to 4 years. There are a variety of options we are able to explore
through the assistance of our advisors in the strategic process that
will assist in this necessity.
However, our core asset continues to be Westinghouse Plasma Corp. in
which we have the industry leading plasma gasification technology that
Alter NRG has been built around. Over the past four years, the Company
has significantly improved the core technology by enhancing
performance, reliability, and the overall economics which has allowed
Westinghouse technology to maintain its technical and commercial lead
over its competitors. However, inherent in plasma gasification projects
are sales cycles measured in terms of four to eight years or more which
creates lumpy and delayed revenue streams. It is a noteworthy challenge
for a public company that is measured on quarterly revenue
performance. In short, we are a small cap public company in the early
stages of market development, which may not be optimal in today's
financial market. In these market conditions it is essential to have a
strong balance sheet and good access to capital and the strategic
process allows us to explore alternatives to support long-term growth
with a strong balance sheet and a world class customer base.
It is important to give recognition to the attributes that have
collectively made us successful in many regards and which I believe
will continue to do so in the coming years. We know we have substantial
work ahead of us to meet the expectations of our stakeholders and we
welcome this challenge. As in the past, everything our company hopes
to achieve going forward begins and ends with the expertise and focus
of our employees and our Board of Directors who challenge management to
lead, innovate and grow our company. I want to recognize them for their
guidance and support of our long-term vision while staying focused on
developing strong and enduring shareholder value.
SELECT FINANCIAL RESULTS ($)
March 31, 2011
March 31, 2010
Three months ended
Three months ended
March 31, 2011
March 31, 2010
Loss per share - basic and diluted
For more information on the Corporation's financial results please visit
www.alternrg.com or www.sedar.com to view Alter NRG's 2011 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: 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 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 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 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 29,
2011 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.
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