ALTER NRG REPORTS THIRD QUARTER 2010 ACTIVITIES AND FINANCIAL RESULTS

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CALGARY, Nov. 8 /CNW/ - Alter NRG Corp., ("Alter NRG" or the "Corporation") is pleased to report on its corporate activities and financial results for the three and nine month period ended September 30, 2010.   

Q3 HIGHLIGHTS

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 near-term growth:

Westinghouse Plasma Corp. ("Westinghouse Plasma") - the industry leading plasma gasification technology that provides clean and renewable energy solutions from waste and biomass and converts it into syngas, electricity or ethanol.  This is a commercially proven technology that has lower emissions, creates more energy than conventional technology and with facilities turning household waste into energy since 2002.

Clean Energy Developments ("CleanEnergy") - 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 industry, CleanEnergy provides complete design and build solutions for commercial projects and also equipment sales through its dealer network across Canada.

Alter NRG is pleased to be presenting highlights for its most successful quarterly revenues of $5.3 million.

Westinghouse Plasma

• Quarterly revenues of $2.7 million, an increase of 600% over prior year.
  
  
• Advanced 23 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 48 proposed projects being advanced worldwide that are in active project development by numerous industry leading companies.
  
  
• Air Products, one of our strategic customers, paid US$500,000 for a site license for the Tees Valley project in Northern England using the Westinghouse Plasma technology. This project represents approximately a US$20 million sale depending upon final scope and is now entering into the detailed engineering phase of project development for approximately US$1.2 million in Q4 of 2010 and Q1 of 2011. 
  
  
• Signed an agreement with Alliance Federated Energy (AFE) for an exclusive license for Wisconsin, Ohio and Illinois for wastes of all types for a license fee of US$11.4 million, with $1.4 million payable in 2010.  They are advancing 4 distinct projects with the first project in Wisconsin named "Project Apollo" being an approximate US$25 million Westinghouse Plasma technology sale.
  
  
• Signed an extension agreement with Coskata for between US$4.1 and US$5.6 million of further testing services.  Coskata has a proprietary syngas to ethanol conversion technology that is using the Westinghouse Plasma technology to create syngas from biomass and waste at the Westinghouse Plasma Centre.  Coskata is expanding its testing program during this 22 month extension period.     
  
  
• Signed an estimated US$1 million equipment sale and strategic alliance agreement with Wuhan Kaidi Holding Investment Co., Ltd. (Kaidi) to construct a commercial demonstration facility which is expected to be operational in Q1 of 2011 upon successful demonstration.  Kaidi has 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 per facility is expected to be US$3 to US$10 million.
  
  
• Advanced discussions with 5 additional companies in China that are interested in advancing next generation waste and biomass projects and expect to announce further project sales during 2010 and early 2011.   China has aggressive mandates to improve waste disposal as well as create renewable energy and the Westinghouse Plasma technology is attracting significant interest by industry leading companies.
  
  
• Announced a project in Minnesota being developed by the Koochiching Development Authority which received $2.5 million in funding from the State of Minnesota for a proposed plasma gasification facility using the Westinghouse Plasma technology.  The State funding is expected to be matched from the US Department of Energy. 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.
  
  
• The St. Lucie County project received a final air permit for a waste-to-energy project in Florida in June of this year.  This represents the first commercial permitting of a waste-to-energy facility using plasma gasification in North America.  The project is advancing through the development stage with the air permit being a key milestone in the process.  This provides initial engineering of US$300,000 in Q4 of 2010, and is expected to have further engineering, site licensing and a $25 million equipment sale upon further project financing. 
  
  
• Concluded a sale for US$1.5 million of Westinghouse Plasma torches to be used for metals recycling.  The torches were partially completed in Q3 and they will be delivered in Q4 of 2010.
  
  
• Announced a collaboration agreement with Technip USA, Inc. (Technip USA) to market the Westinghouse Plasma technology owned by Alter NRG.  Under the agreement, Technip USA will provide industry standard design, engineering, and procurement services as well as overall performance guarantees, in conjunction with Alter NRG, to support project financing for plasma facilities.  Technip USA, a subsidiary of Technip S.A. (Technip), is a recognized leader in the energy sector with 23,000 people working in 48 countries globally, and over 6.5 billion
  Euros of annual revenues. 
  
  
• Announced the expansion of the Dufferin County energy from waste project to an approximate 7.5 MW facility, and further sourcing of waste feedstock from the surrounding municipalities.  Also announced the creation of Navitus Plasma Inc. (Navitus Plasma) which will focus on the development of energy from waste projects in Ontario and provide dedicated resources and capital for the projects.  Navitus Plasma will have an exclusive license for the Westinghouse Plasma technology in Ontario for consideration of $7 million cash, of which $2 million is payable upon closing of their development round of financing.

CleanEnergy

• Sales of $2.4 million during the quarter which is an increase of 77% over the second quarter.  This represents the most successful quarter in the history of CleanEnergy.  Also expanded the backlog of sales to $2.4 million and an overall pipeline of identified opportunities from 2010 to 2012 of over $260 million.
  
  
• Closed on a hockey rink installation in Truro, Nova Scotia for $1.5 million to be completed in Q4 of 2010 and Q1 2011.
  
  
• Closed on a hockey rink in Fredericton, New Brunswick for $975,000. The project is expected to be completed in Q4 of 2010.
  
  
• Executed on a pool complex in Cambridge, Ontario for $550,000.  The project was partially funded through the federal-provincial Infrastructure Program and the city has further green infrastructure spending to complete in 2011.
  
  
• Executed on an eight story condo development on Sudbury Street in Toronto for a large real estate developer for $650,000.  The developer is expected to advance multiple jobs in the Ontario market in 2010 and 2011.
  
  
• Executed on an elementary school in Kelowna, British Columbia, which is the first of many schools in BC that are focusing on going green and reducing their carbon footprint using geoexchange.
  
  
• Announced the strategic relationship with the Remington Group, a leading commercial and residential developer across Canada and is intending on installing geoexchange in numerous developments totaling approximately $15 million over the next 2 years.
  
  
• Installed a residential geoexchange system for NDP party leader, Jack Layton.

Corporate

• Announced that Alter NRG has been named a finalist by Platt's in two categories - Rising Star and Green Energy Initiative of the Year.  As well, Mark Montemurro, President and CEO of Alter NRG has been named a finalist for the Ernst and Young Entrepreneur of the Year Award for the second straight year in the Cleantech category, Prairie division.

For more information on the Corporation's activities please visit www.alternrg.com or www.sedar.com to view Alter NRG's 2010 Third Quarter Report.

PRESIDENT'S MESSAGE

At heart, business models are stories that explain how a company works. Changing a business model then is like writing a new story. Uncertain market conditions influenced adjustments to our business model back in 2008, seeing us focus more on technology sales as opposed to project development.  I am very pleased to report that we are turning the corner with numerous milestones and successes making this quarter our best in the Corporation's history with $5.3 million in revenue.

While we haven't had a complete overhaul to our business model, we do recognize that the changes have confused some employees, customers and investors - who are quite frankly the people who matter when it comes to our success. I want to use this quarterly message as an opportunity to make our story easier to understand. 

Alter NRG brings proven alternate energy technology to market. So, we are first and foremost a technology company. In the early days we were very focused on project development and then shifted that focus upon acquiring Westinghouse Plasma Corporation through our Initial Public Offering, which gave us the ability to bring in revenues from technology sales. The changing financial market required us to change along with it and project development, at that time was not a prudent model to follow. There are a lot of moving pieces involved in bringing anything to market and so our business model has been adapted to be vertically integrated. This requires a closer alignment with the developer and customer support and while it does require greater resources and people than a straight technology sale would it has, among other positive things, lead to more opportunity and an expansion of our core competencies. 

The supporters of our plasma business have always recognized the opportunities in front of us, and this quarter, more so than at any other time in the Corporation's history we have seen the positive effects of our earlier decisions. Our pipeline of opportunities has matured and has resulted in a number of milestones for the Corporation including the advancement of Air Products' Tees Valley Project, which was publicly announced by them this quarter, and which has resulted in revenues for Alter NRG now, while still anticipating the large equipment order next year.

In addition, revenues from licensing have been a supplementary means of capitalizing on our Westinghouse product's strong market demand which was not included in our original model. Simply put, our technology is valuable, it is trusted and partners are prepared to pay to secure the exclusive use of it. The $11.4 million license agreement in the Midwest that provides us with earlier cash flow as an adjunct to the engineering, site license and equipment sales we have always pursued is a model that we are looking to repeat in the Ontario market and elsewhere in the world.

In previous messages I've talked about how North America's regulatory procedures are drawn-out and complex to navigate in comparison to Europe and China (whose streamlined processes have provided us with multiple opportunities that are advancing quickly). I'm happy to say that the tides are turning in North America as we are experiencing a shift in the adoption of renewable energy technologies as a way to benefit the environment and our energy security. We are beginning to see endorsement by government and regulatory bodies and a greater recognition for commercially proven renewable energy models that offer a good risk-reward for the investment. The project in St. Lucie Florida has now received its final air permit which demonstrates that this can be a viable form of energy production in North America and is a major milestone not only for Alter NRG and Geoplasma, but for the broader North American energy from waste industry.

Finally, but not least important, we have continued to improve our product.  We have made a lot of progress in this regard, but arguably one of the most significant advancements is in our ability to provide performance guarantees from a major engineering company which gives developers the ability to secure project funding.

Adapting our model hasn't meant that we have closed the door on being project developers or the annuity income from high rate of return energy projects. In fact, we have always had and continue to have a focus on preserving that capability by retaining options to invest in partner developments. With many of our customers, including Fortune 500 companies like NRG Energy, and Air Products, we have an option to invest up to 25% in their projects.  The best part of this is that we invest into the project at cost, with no promote near the end of the project development cycle when the risk has been reduced.

Further to our focus on project development, this quarter, we have taken steps to create a new company, a development company. The launch of Navitus Plasma is an important strategy in terms of developing projects that require dedicated resources to support local political, stakeholder and regulatory groups. Navitus Plasma will have an exclusive waste from energy license for the use of our plasma technology in the Province of Ontario. Alter NRG will retain minority interest and ownership rights to the equity in projects. Like a modified franchise model in that we provide the technology and guidance but local operators tailor the business to meet their geographic needs - this model will have application in many parts of the world and we believe provides the greatest shareholder value.

On the geoexchange side we are very pleased by the progress and have seen the greatest revenues in CleanEnergy's corporate history. Our model has been well received in Canada by developers and customers and it continues to grow with significant increases in revenues, backlog and also a pipeline of over $260 million identified commercial geoexchange projects. This includes successes from Coast to Coast - from an elementary school on the West Coast in British Columbia, to a hockey arena on the East Coast in New Brunswick.  The transaction sizes are now routinely in the $0.5 million to $1.5 million which makes the geoexchange division another fast growth opportunity for our shareholders.

That said, operating in high growth but early stage markets always has its ups and downs.  This quarter we took an impairment on an investment in Groundheat, a geoexchange drilling company.  We are frustrated by the lack of success in this entity.  However, our key motivation for this transaction was to obtain a right of first refusal for the Remington Group, a large commercial developer in Canada.  This relationship with Remington remains strong and we maintain our position as preferred supplier for geoexchange with them, which we expect will translate to approximately $15 million in revenues over the coming years.

We don't operate in an industry that sees customers pick up the phone to order a plasma gasification system or buy a building's geoexchange design off the shelf. The fruits of our labour are measured in years - not months. William F. Book was right when he said "Learn to adjust yourself to the conditions you have to endure, but make a point of trying to alter or correct conditions so that they are most favorable to you."  We are working hard to create favourable conditions for our employees and shareholders and as always value the continued support and confidence of our shareholders as our story continues.

SELECT FINANCIAL RESULTS ($)

	September 30, 2010	September 30, 2009
Total assets	$92,068,558	$ 100,876,584
Total liabilities	21,703,777	22,755,142
Total equity	70,364,781	78,121,442
	Three months ended	Three months ended
	September 30, 2010	September 30, 2009
Revenue, interest and other income	$ 5,292,580	$ 887,524
Loss	(6,243,917)	(6,923,156)
Loss per share  - basic and diluted	(0.10)	(0.12)
	Nine months ended	Nine months ended
	September 30, 2010	September 30, 2009
Revenue, interest and other income	$ 9,359,054	$ 2,495,073
Loss	(15,525,293)	(15,956,297)
Loss per share  - basic and diluted	(0.25)	(0.28)

For more information on the Corporation's financial results please visit www.alternrg.com or www.sedar.com to view Alter NRG's 2010 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 for electricity, natural gas, coal and other 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, 2010 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.

For further information:

Mark Montemurro, President and Chief Executive Officer
[phone] [email protected]

Daniel Hay, Chief Financial Officer
[phone]  [email protected]