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CALGARY, Feb. 24, 2014 /CNW/ - Alter NRG Corp. ("Alter NRG" or the "Company") announces that it has signed agreements with Bijie City Green Environmental Energy Limited ("BGE") to provide a Westinghouse Plasma Gasification Solution for $USD15 million. The project is expected to be a 600 tonne per day facility that will produce 15 MW of electricity using municipal solid waste from the City of Bijie, China. This project has been officially designated as a key project by the Provincial Government of Guizhou due to the anticipated environmental benefits.
The project has progressed steadily through business development and environmental permitting for the past 4 years. The project has obtained provincial approval and is awaiting the People's Republic of China ("PRC") final approvals which are expected in Q2 of 2014. After the initial start-up, expected in mid-2016, BGE intends to double the capacity of the facility with a second gasifier.
According to Jeffery Hu, Principal at BGE, "We are very excited to be kicking-off our first project in China which we believe provides the best-in-class waste management solution with better environmental performance compared to other alternatives. In addition to the Bijie project, BGE has additional projects in China which it also continues to advance. This project will also provide a testing platform for clean coal applications. We believe that the Westinghouse Plasma Gasification Technology will play a significant role in China Clean Coal Applications."
Walter Howard, Chief Executive Officer of Alter NRG states that "having a simultaneous second large-scale project commencing is a significant commercial milestone as it will provide additional cash flow for 2014. This illustrates the viability of our market-leading Westinghouse Plasma Technology in other jurisdictions and the large pipeline of projects that continue to advance around the world."
Alter NRG and its wholly owned subsidiary Westinghouse Plasma Corp. will provide a site license, gasifier equipment, related control, instrumentation, and engineering services for approximately USD$15 million. Alter NRG expects to realize the majority of the revenue over the next 18 months. Alter NRG has executed and received a mobilization payment on the engineering contract and executed memorandums of understanding on the site license and equipment sale that will be finalized once PRC approvals are obtained. The final equipment package is subject to change based on the engineering work performed. The project will not proceed past the engineering phase valued at approximately $1 million until final PRC approvals are obtained.
The project intends to convert the vitrified slag output from the Westinghouse Plasma Gasifier into block foam insulation which can be sold at a much higher sales value. BGE has patented a process to convert the slag which has passed technical certification in the China market and the resulting foam insulation can be sold as a Class A, non-combustible building material.
ABOUT ALTER NRG
Alter NRG provides alternative energy solutions to meet the growing demand for environmentally responsible and economically viable energy in world markets. Alter NRG's primary objective is to further commercialize the Westinghouse Plasma Gasification Technology, through its wholly owned subsidiary, to provide renewable and clean energy solutions from a wide variety of feedstocks, and provide a wide variety of energy outputs - including liquid fuels like ethanol and diesel, electrical power and syngas.
The Toronto Stock Exchange does not accept responsibility for the adequacy or accuracy of this release.
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, this news release contains forward looking statements pertaining to the expected size and output of the project, start-up of the project expecting to occur in mid-2016, the intention of BGE to double the capacity of the facility in the future, the final approvals of the PRC being obtained and the finalization of equipment sales and site license upon receipt of the final PRC approvals, the amount and realization of revenues to be received from the project by the Company and the future role of Plasma Gasification Technology in China. 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 Company. 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; failure of the proposed project to proceed to completion; arrangements with key suppliers; failure of the project to receive final PRC approvals; failure of the PRC to approve full funding; the cancellation of the agreement at any time by the customer; potential product liability and other claims; risks associated with the proprietary technology;; changes in government regulation, including changes to environmental regulations; 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 Company's Annual Information Form dated March 27, 2013 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 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:
Walter Howard, Chief Executive Officer
(403) 806-3877 [email protected]
Daniel Hay, Chief Financial Officer
(403) 214-4235 [email protected]