TSX - NRG
OTCQX - ANRGF
CALGARY, Nov. 13, 2012 /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
and six months ended September 30, 2012
The Corporation's focus is the Westinghouse Plasma Gasification
Technology which is the worldwide leader in creating energy from waste
using plasma gasification. We market and sell the Westinghouse Plasma
Technology through our wholly owned subsidiary, Westinghouse Plasma
Corp. ("Westinghouse Plasma"). Westinghouse Plasma is the industry
leader for the treatment of all types of waste (industrial, household,
commercial, hazardous, etc.) using plasma technology and converting it
into useable energy such as electricity, syngas (replacement for
natural gas), heat, steam, or liquid fuels such as diesel or ethanol.
Our Vision - To provide the leading technology platform for converting
the world's waste into clean energy for a healthier planet.
Our Mission - As the industry leader, we will forge and dominate an
industry segment that transforms current waste management practices. We
build shareholder value by enabling customers to convert waste into
clean energy by providing plasma gasification products, services and
solutions that are innovative and environmentally friendly.
Westinghouse Plasma is a commercially proven technology that is used in
two commercially operating facilities in Japan that have been
converting waste into energy for more than 9 years, as well as
facilities operating in India and under construction in China and
England. From an environmental perspective, a plasma facility will have
significantly lower emissions than other alternative energy facilities
and have an overall emissions profile lower than a natural gas combined
cycle power facility, which is considered the cleanest fossil fuel
production. From an economic perspective waste-to-energy projects have
strong project returns in populous areas, as the projects receive
revenues from tipping fees to take the waste and then also receive
revenues for the sale of energy.
Alter NRG is pleased to be presenting highlights for its third quarter
of 2012 as revenues have increased by 55% over the prior year. This is
reflective of a maturing business plan with significant long-term
The third quarter of 2012 had $3.2 million in revenues, a 55% increase
year to date over prior year. This revenue reflects the progress on the
fabrication of the scale gasifier for the 50MW facility under
construction by a leading Fortune 500 company.
Sales of $3.2 million which is a year to date increase over prior year
of 55%. Revenue is expected to continue to increase in 2012 and 2013 as
the pace of fabrication increases as well as further licensing
opportunities which are expected to transact before year-end.
Executed on approximately 37% cumulatively of the $20 million purchase
order from Air Products, a US based Fortune 500 Company, which has
previously announced its intention to build 4 more advanced
gasification facilities in the United Kingdom in the coming years. On
October 23rd, 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.
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 upfront.
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 late 2012 with the intention of ordering equipment in
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 equipment order in early to
mid 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.
Wuhan Kaidi ("Kaidi"), which ordered engineering and torches previously,
continued construction of its demonstration facility in China which is
approximately 90% complete. Westinghouse Plasma personnel are gearing
up to commission the site in Q4 of this year. Upon successful
demonstration (expected in Q4 or early 2013), Kaidi has more than 100
sites identified to take biomass and convert it into power and liquid
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 quarter they
ordered additional equipment for their facility. The facility has
finalized its feedstock agreement, with a large Chinese waste company
and its site location and they are advancing the site plan.
Advanced negotiations on several torch orders in international markets.
One negotiation in China has advanced to a signed agreement with
delivery dates in 2012 and 2013. The agreement is awaiting final
approvals and receipt of the mobilization payment before work will
Finalized the detailed engineering for the standard design of the 200
tonne per day Westinghouse Plasma Gasification Technology for a project
in Minnesota being developed by the Koochiching Development Authority.
The standard gasifier is expected to sell for $12 million and the
project has now applied for regulatory approval.
With the introduction of Walter Howard as the newly appointed Chief
Executive Officer, 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 favorable
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 Technology. 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, Roman Abramovich, who
is a Russian billionaire with complementary investments in the waste to
energy space and who intends to finance various waste to energy
projects. The financing, led by Mr. Abramovich, was for 30,769,230
shares at a price of $0.325 for a total investment of $10 million.
During the third Quarter we strengthened the Alter NRG balance sheet.
While everyone dislikes dilution it was important to give our
world-leading technology a foundation that is stable, and shows
customers and investors that we are here for the long-term. As I stated
in my previous CEO's messages, I am convinced this technology has hit
the tipping point and is positioned for significant success. However,
technology development takes time and now we have a stable foundation
for that growth.
Commercially, we are continuing to gain traction. Even in the short time
since I have been CEO, I have witnessed a pronounced improvement in the
quality of customers and developers with whom we are doing business. It
started late last year when we announced the sale of a full-scale
gasifier to Air Products, a Fortune 500 Company. 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, but to
the industry as a whole. It is a paradigm shifting project in many ways
due to its large scale, its more efficient energy production and also
the fact it is being advanced by a world leading Fortune 500 company.
The commercialization of Westinghouse Plasma Gasification Technology
continues to gain momentum, and on October 23rd I was very pleased when
Air Products announced the development of their second project in Tees
Valley of a similar size. This facility will be built on adjacent lands
which should streamline the regulatory process and speaks directly to
revenues in 2013. This will put Air Products investment into our
technology to over $800 million and I cannot think of a more compelling
vote of confidence we could receive.
This quarter, I had a chance to travel and meet some of our other
leading customers and was very impressed by their progress and their
broad business plans using our technology. This included a visit to
China where I met with Wuhan Kaidi and was able to witness first-hand
the large scale demo facility that is nearing completion. Although it
has been a slow process to this point, they are now completing their
first plant with aggressive plans for construction of additional
facilities in China in 2013. I also met SMS Infrastructure of India
this quarter, which has already built two facilities and is advancing a
portfolio of additional projects in India and the Middle East. Two
projects are now in the advanced stages of development and regulatory
approval and we agreed upon scope and other key business dealings
during this meeting. I expect both of these customers to accomplish
great things over the coming years.
As important as talking to the more advanced stage customers, I also had
the chance to advance negotiations with other customers and developers
that we do not always mention, in our quarterly reports as we focus on
the here and now. From many of the other developers in China, India,
and Europe I got the profound sense that things are moving more quickly
than before, and that they are on the right track. Our job is to
translate this into long-term relationships that provide cashflow to
the Company for the benefit of our shareholders. We are making steady
Part of our growth will be co-investment into projects that are being
developed by capable partners and have strong financial returns. We
will leave it to the developers to advance the time-consuming and often
expensive process of project development in their local jurisdictions.
We will focus on the options to invest along-side the developers once
the projects have achieved their major commercial milestones. I have
built a career financing energy projects and believe this an area where
we can add significant shareholder value.
Strengthening our balance sheet was important to our long-term success
as a leading infrastructure technology and I am very pleased to have
achieved this milestone. From our strengthened foundation, it is now
our mandate to translate our significant customer base into cashflow,
and continue to strengthen that customer base. I am very confident from
my travels that this is not only possible, but inevitable for this
SELECT FINANCIAL RESULTS ($)
September 30, 2012
December 31, 2011
Three months ended
Nine months ended
September 30, 2012
September 30, 2011
September 30, 2012
September 30, 2011
Income (loss) from continuing operations
Loss from discontinued operations
Basic and diluted loss per share - continuing operations
Basic and diluted loss per share -
For more information on the Corporation's financial results please visit
www.alternrg.com or www.sedar.com to view Alter NRG's 2012 Third 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 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.