Alter NRG Corp. provides operational and financial update

    TSXV - NRG

    CALGARY, Oct. 21 /CNW/ - (TSXV - NRG) - Alter NRG Corp. ("Alter NRG" or
the "Company") is pleased to provide the following update on the Company's
cash position, sales and strategic alliances opportunities and project
    In response to the slowdown in the global economy and turbulent capital
markets, Alter NRG is proactively refining its strategic plan to manage this
new economic landscape. Alter NRG's corporate focus has shifted from
internally-led project development to technology sales that preserve the
Company's strong balance sheet. This involves focusing on generating
increasing cash inflows through technology licenses and sales and reducing the
capital expenditures on projects through smaller working interests and slowing
project timelines.
    "Alter NRG is moving forward with a focus on technology sales. Our
existing strategic partnerships remain strong and we're excited about
technology sales and licensing opportunities developing with new strategic
partners," said Mark Montemurro, Alter NRG President and Chief Executive
Officer. "During these turbulent economic times we remain committed to a
strategic plan that is focused, while ensuring we continue to create value for
our shareholders."

    Cash Position

    At September 30, 2008, Alter NRG's net working capital surplus was
approximately $54 million and the Company has no debt. Alter NRG's current
general and administrative expenses are approximately $1 million per month.

    Sales and Strategic Alliance Opportunities

    Alter NRG remains focused on increasing technology sales to provide
shorter-term cash flows. By dedicating a greater amount of resources to
technology sales and strategic alliance opportunities, Alter NRG will be
well-positioned to support clients and their projects, and further strengthen
the Company's position as a leading supplier of plasma gasification technology
and services.
    Alter NRG shifted its technology sales strategy early in 2008 to focus on
companies that have strong balance sheets and a need for clean and renewable
energy solutions. Over the past four months, the Company has met with more
than a dozen qualified candidates and the interest generated from meetings
with the large waste services and energy companies in North America and Europe
have been positive - as they are actively looking for commercially-proven
renewable energy solutions. Alter NRG will continue to pursue technology sales
and alliances with well-capitalized companies in both North America and

    Customer Project Development

    Alter NRG's customers continue to advance their project development
opportunities and management believes they have the balance sheets and access
to capital to continue to execute these projects.

    -   The two hazardous waste facilities under construction in India are
        continuing to advance with the first expected to be operational in
        the fourth quarter of 2008, and the second in mid-2009. Both
        facilities will use Alter NRG plasma gasification technology to
        convert approximately 68 tonnes-per-day of hazardous waste into
        power. The facilities are owned and operated by SMS Infrastructures
        Limited, India's largest civil engineering and infrastructure
        development company. These facilities will increase the commercial
        facilities processing waste using Alter NRG technology from two to
        four, and provide further commercial history for smaller-scale waste
        solutions that can be replicated for future projects.

    -   Project Lighthouse, the 40,000 gallon per year ethanol commercial
        demonstration project, which is being developed by Coskata and its
        partner General Motors, is advancing on schedule and is expected to
        be completed in the spring of 2009. The commercial demonstration,
        will be located at the Alter NRG pilot facility in Madison,
        Pennsylvania, and the existing plasma gasifier will provide the
        synthesis gas ("syngas") which will than be converted to ethanol
        through the Coskata's proprietary conversion process. This project is
        expected to result in $2.5 million in revenues in 2009 for Alter NRG
        and the capital costs are borne by Coskata for the project
        development. This ethanol commercial demonstration is consistent with
        Alter NRG's strategic focus, as it will bring key strategic customers
        focused on renewable energy to the Alter NRG pilot facility in 2009.

    -   The Somerset project which is operated by NRG Energy will convert
        coal and biomass into 120 MW of power, continues to advance. The
        project received regulatory approval from the Department of
        Environmental Protection of Massachusetts on January 25, 2008,
        however it has been subject to various regulatory appeals since that
        time. Alter NRG has an option to elect to take up 10% to 25% in the
        project, at its sole discretion, and will have to make the election
        once the project has final approval to proceed. Alter NRG believes
        strongly in the Somerset project but will make its investment
        decision based on several factors including the Company's access to
        capital and the ability to obtain project debt. The Company is also
        supporting NRG Energy's project development efforts on other waste-
        to-energy projects and coal retrofit opportunities.

    -   Other project developers also continue to advance plasma gasification
        opportunities. This includes the Geoplasma project at St. Lucie
        County, Florida which has available municipal bond financing. This is
        an example of approximately 10 projects worldwide in active
        development using the Alter NRG technology. These projects are
        subject to regulatory approvals and must obtain financing in order to

    Project Developers' Access to Capital

    The capital market turbulence has significant impacts on the availability
of capital; however, management believes that renewable and clean energy
projects have advantages that will allow for easier access to capital as

    -   Projects using the Alter NRG technology are generally from
        $50 million to $300 million in total capital and therefore are at a
        small enough scale to attract the limited debt and equity financing
        currently available to project developers.

    -   Regulatory incentives exist for clean fossil fuel and renewable
        energy projects. These include loan guarantees in the US for clean
        coal and renewable energy projects, grant money for projects which
        involve CO(2) sequestration plus various government programs at the
        Provincial, State, and Federal government levels for gasification in
        Canada and the United States.

    -   Waste-to-Energy projects in the United States can be eligible for
        tax-free municipal bond financing which can provide up to 95% of the
        project financing.

    -   Alter NRG has lenders which have been actively performing due
        diligence over the past six months and have expressed formal interest
        in providing project-level debt. Several of these lenders have access
        to capital and continue to deploy capital in these difficult market

    Although credit is a key issue for all project developers in this market,
Alter NRG's technology solutions have unique advantages to access the limited
capital, which includes government incentives, smaller project scopes, and
strong relationships with the capital community.

    Alter NRG Project Development

    As a means to reduce Alter NRG's capital requirements the Company has
adopted a more stepwise approach for internally-led projects in development.
    Based on a slowing economy that may affect the outlook for power
development in Alberta, Alter NRG will be delaying the decision to proceed on
phase one of the Bruderheim power facility until the spring of 2009.
Development of the first phase of the project had already commenced with the
intention of having the 120 MW natural gas combined cycle ("NGCC") facility
operational by early 2010.
    In the spring of 2009, the Company will assess combining the two phases
to complete the Bruderheim integrated gasification combined cycle ("IGCC")
project that will convert petroleum coke and oilfield waste into 120 MW of
power - including design for carbon capture and storage ("CCS"). Delaying the
development of phase one of the Bruderheim project is expected to reduce the
near-term capital requirements for 2008 and 2009 to under $2 million. Using
this reduced budget, the Company will continue to advance project engineering,
government grant applications and a strategic partner selection process to
advance the Bruderheim IGCC project with an expected completion date of the
IGCC facility in late 2011.
    Alter NRG is also reducing project development expenditures on the Fox
Creek coal-to-liquids project which is expected to produce up to 40,000
barrels per day of diesel fuel and naphtha from Alter NRG's existing coal
reserves. The Company expects to spend less than $3 million in 2008 and 2009.
The Company will continue to advance engineering work to further define the
project scope, advance government grant applications and continue to seek
strategic partners. The delayed timeline will impact the final completion of
the development until late 2015, subject to successful partner selection by
the end of 2009.


    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 become a leader in the development of innovative gasification
projects for the commercial production of energy. The Company's objective for
the next decade is to utilize our commercially proven plasma gasification
technology to become a senior energy producer of hydrogen, syngas, and
transportation fuels (diesel, naphtha, ethanol, etc.), steam and electricity,
all of which are fundamental products for the world's growing energy needs.

    The TSX Venture 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 July 8, 2008 available at 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.

For further information:

For further information: Mark Montemurro, President and Chief Executive
Officer, (403) 806-3877,; Daniel Hay, Chief Financial
Officer, (403) 806-3881,; James McCreath, Manager Corporate
Communications, (403) 806-3890,

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Alter NRG Corp.

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