Alter NRG Corp. announces the Westinghouse Plasma Centre is delivering clean
syngas to Coskata's ethanol facility

TSX - NRG

OTCQX - ANRGF

CALGARY , Jan. 6 /CNW/ - Alter NRG Corp. (TSX: NRG; OTCQX: ANRGF) ("Alter NRG" or the "Company") is pleased to announce that Westinghouse Plasma Corp's ("Westinghouse Plasma") plasma gasification operation in Madison, Pennsylvania is now successfully operating and providing clean syngas to the adjacent cellulosic ethanol conversion facility operated by Coskata, Inc ("Coskata"). As was previously announced on April 25, 2008 , Project Lighthouse is Coskata's semi-commercial cellulosic ethanol plant that converts syngas (provided by the Westinghouse Plasma gasification process) into ethanol.

Coskata's proprietary process was analyzed by Argonne National Laboratory, who found that every unit of fossil energy used, in turn generated up to 7.7 times the amount of energy which is significantly better than the current ethanol industry. It was also found that it reduces CO(2) emissions by up to 96 percent compared with a well-to-wheel analysis of gasoline. The feedstock-flexible process utilizes non- food biomass, thereby providing an opportunity to produce fuel-grade ethanol in greater quantities and at a lower cost point than that produced from food-based sources (corn, sugar, etc.).

Project Lighthouse is located at the Westinghouse Plasma gasification facility in Madison, Pennsylvania. Westinghouse Plasma is a wholly owned subsidiary of Alter NRG. The Westinghouse Plasma gasification system converts non-food biomass in its existing gasification reactor to provide clean, cool, pressurized syngas. The syngas is the energy source of Coskata's FlexEthanol conversion process. This approximate $25 million semi-commercial facility constructed by Coskata will increase the utilization rate of the WPC gasification facility and is anticipated to provide approximately $2.5 to $3.0 million in revenue to the Company from the production of specified syngas during the first half of 2010.

According to President and CEO of Alter NRG Mark Montemurro , "Alter NRG has worked diligently to transform our pilot facility into a commercial demonstration facility which can operate on an extended continuous basis. In addition to the near term revenues, Project Lighthouse has attracted international interest from leading energy companies and developers from around the world. The Westinghouse Plasma site is hosting industry leading energy, forestry and industrial companies to show the technology at work first hand."

The gasification section of the demonstration plant has been modified to produce clean, tar free, synthetic gas tailored for the Coskata process. The syngas produced from biomass is expected to be suitable for other energy production processes, such as the production of power from a gas turbine. Dr. P. Van Nierop , VP Technology at Alter NRG believes "the demonstration plant operations are validating our technical performance projections as well as the plasma gasification island and syngas clean up capability. This significantly reduces risks associated with the full scale commercializationof biofuels" Currently the peak volume of biomass processed per day at the facility is 18 tons per day. The real time capability to manipulate the syngas composition is an advantage for Coskata's testing program and for other customer applications as well.

"Working alongside Alter NRG has allowed us to showcase the successful scale-up and commercial viability of our process" stated CEO of Coskata Bill Roe . "The patented technology uses non-grain inputs to create feedstock flexible ethanol, which will directly compete with gasoline. Project Lighthouse has been designed to allow direct scaling to commercial plants capable of producing 50 to 100 million gallons per year." Coskata was recently ranked as one of the hottest bioenergy companies in the world by Biofuels Digest.

Coskata has also engaged Alter NRG for engineering services on their first commercial facility which is expected to be a 50 to 60 million gallon per year ethanol facility. Alter NRG expects this facility to generate approximately $50 million in engineering services and equipment sale revenues upon successful completion.

ABOUT ALTER NRG

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 commercialize growth technologies through environmentally sustainable and economically viable alternative energy projects. The Company's objectives are twofold; First, is to further commercialize the Westinghouse Plasma Gasification Technology, a wholly owned subsidiary, to provide renewable and clean energy solutions from a wide variety of feedstocks, and providing a wide variety of energy outputs - including liquid fuels like ethanol, power, and syngas; Second, to capitalize on the rapidly growing geoexchange residential and commercial heating and cooling market through a wholly owned subsidiary CleanEnergy that enables consumers to reduce their carbon footprint and reduce the cost and volatility of energy bills using the energy from the earth.

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: 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 March 31, 2009 available at www.sedar.com 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: Mark Montemurro, President and Chief Executive Officer, [phone], [email protected]; Daniel Hay, Chief Financial Officer, [phone], [email protected]