ALTER NRG CORP. PROVIDES A STATUS UPDATE ON THE DUFFERIN PROJECT AND
ANNOUNCES THE CREATION OF AN ONTARIO DEVELOPMENT COMPANY

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OTCQX- ANRGF

CALGARY, Oct. 21 /CNW/ - (TSX: NRG; OTCQX: ANRGF) Alter NRG Corp. ("Alter NRG" or the "Company") is pleased to announce that the proposed Dufferin County energy from waste facility has been expanded to 200 tonnes per day, as a result of a new bylaw allowing the County control of all waste within its jurisdiction. This bylaw enables the County to commit waste from all of its 8 municipalities to the proposed facility.   

As well, Alter NRG is supporting the creation of a development company called Navitus Plasma Inc. ("Navitus") that will have an exclusive license for use of Westinghouse Plasma Gasification for waste in the Province of Ontario.  Navitus will advance Dufferin County and other plasma gasification projects in the Ontario market, for which it is currently looking to raise $12.5 million of development funding, that Navitus has engaged Thomas Lloyd. Navitus will then pay Alter NRG $7 million for the exclusive license, with $2 million paid upon successfully closing the initial development financing and the remaining amounts payable in increments as projects reach financial close.

As previously announced on October 13, 2009, Dufferin County in Ontario selected the Westinghouse Plasma Technology (owned by Alter NRG) and signed a Memorandum of Understanding to develop an energy recovery facility that will process household waste and convert it into electricity.  Since then, the County has completed the feasibility study and has moved forward with an expanded project of 200 tonnes per day (previously the project was 75 tonnes per day).  The project is expected to produce approximately 7.5 MW of electricity which is enough to power approximately 8,000 homes.  Dufferin County plans to provide the waste feedstock for a 20 year period, a serviced site for the facility, and will work with the developer to obtain regulatory approval, project financing, and government grants for the project.

Councillor Ed Crewson, Chair of the Community Development Committee for Dufferin County states that "We are pleased that the project is moving forward and getting the municipalities within the County to provide their waste was a significant milestone in the project.  The selection of Alter NRG's Westinghouse Plasma Technology for our energy from waste facility will result in the generation of clean energy through the plasma gasification of our waste into electricity.  This is a major step forward in achieving a sustainable Dufferin County and thereby protecting our environment for our children's benefit."

The Ontario projects require dedicated management resources development and additional capital to advance effectively and Navitus has been created to fulfill the project development mandate in the Province of Ontario, Canada.  Alter NRG will provide Navitus with its current portfolio of projects in Ontario, including the Dufferin project, its studies and reports related to the Westinghouse Plasma Technology and market studies in Ontario and also provide an exclusive technology license for all waste feedstocks in the region for a term of 10 years subject to certain milestones.  In consideration Alter NRG will receive approximately $5 million of equity in Navitus and $7 million in cash for the exclusive license, of which $2 million is payable upon closing of the development financing. 

George Todd, President of Navitus states that "Ontario is a lucrative market that has a strong alternative energy mandate, a need for baseload power and a projected landfill shortage.  The already high tipping fees paid for waste disposal and the attractive power prices the Province has provided for energy from waste facilities makes Ontario an attractive market for project development using the Westinghouse Plasma Technology." 

Navitus has assembled a strong Board of Directors and Management Team to execute on the project development.  The Board of Directors includes Jan Carr who has 38 years of experience in the electrical energy business and he was the former CEO to the Ontario Power Authority and former Vice-Chairman of the Ontario Energy Board; Frank Carnevale, President and CEO of Bridgepoint Group Ltd., which focuses on project development in both the electrical energy business and waste business; and Mark Montemurro, President and CEO of Alter NRG.   The Management Team will be led by George Todd with 39 years experience and knowledge in the Ontario market including CEO of Barrie Hydro and Commissioner of Works for an Ontario municipality.  Ken Willis, has been seconded from Alter NRG to be the Executive Vice-President of business development at Navitus with 29 years experience with senior development roles in energy marketing and business development, including EVP business development and President of the non-regulated business at ENMAX Corporation. 

Mark Montemurro, President and CEO of Alter NRG states that "During the past several years Alter NRG has developed strong project development opportunities in the lucrative Ontario market.  Navitus provides dedicated resources and is actively raising capital to allow for expedient and efficient development of the projects.  Alter NRG will retain a 25% option to invest at the project level as well as sell technology and equipment between $12 and $50 million per project.  This model will also serve as a template to be replicated in other geographies so as to have plasma gasification projects advanced with local expertise and relationships."

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, through 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 and diesel, electrical 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, this new release contains forward looking statements pertaining to capital expenditures, schedules and commencement of operations of existing projects and projects under development; availability of project financing; timing of sales; industry trends; factors influencing capital investments and development activities; the Corporation's reputation and market position within the industries in which it operates and the Corporation's strategy and competitive advantages.  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; Navitus' ability to market projects effectively and raise capital, arrangements with key suppliers; potential product liability and other claims; risks associated with the proprietary technology; closing on grants and incentives, the possible unavailability of financing at competitive rates and the related effect on development activities; 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 Company'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:

Alter NRG Contacts:

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

Daniel Hay, Chief Financial Officer
[phone]           [email protected]
Website: www.alternrg.ca