TSX - NRG
OTCQX - ANRGF
CALGARY, May 14, 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 ended March 31, 2012
The Corporation's core 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 a wholly owned subsidiary called 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 first quarter of 2012 as revenues have increased by 15% over the prior quarter. This is reflective of a maturing business plan with significant long-term potential.
The first quarter of 2012 was a significant milestone as the Corporation began the fabrication of the Westinghouse Plasma Gasification Solution for Air Products. The fabrication is approximately 7% complete at March 31, 2012 and is progressing on time, and on-budget. The project is progressing full swing and we expect a very busy remainder of 2012.
- Sales of $1.4 million which is an increase over prior quarter reflecting the sale to Air Products of the large scale gasification solution. Revenue is expected to continue to increase in 2012 as the pace of fabrication increases.
- Executed approximately 7% of the purchase order from Air Products, a US based Fortune 500 company.
- SMS Infrastructure ("SMS") (who has already constructed two hazardous waste facilities) advanced two projects into the formal regulatory approval phase with an expected equipment order in late 2012 or early 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 Solution and provides turnkey hazardous waste facilities to the market and has approximately 140 people in their gasification division.
- Supported the final engineering for Wuhan Kaidi ("Kaidi") who continued construction of its demonstration facility in China. Upon successful demonstration (expected in Q3 of 2012), Kaidi has more than 100 sites identified to take biomass and convert it into power and ethanol.
- Supported a demonstration facility in Shanghai China, for which we have delivered the detailed engineering and torches. The facility has finalized its feedstock agreement, with a large Chinese waste company and its site location and they are advancing the site plan.
- Finalized the detailed engineering on the standard design of the 200 tonne per day Westinghouse Plasma Gasification Solution for a project in Minnesota being developed by the Koochiching Development Authority. The standard 200 to 400 tonne per day gasifier is expected to sell for $12 million and the project has now applied for regulatory approval.
- Continued the regulatory process and financing efforts for the Dufferin County energy-from-waste project in Ontario, using the standardized 200 to 400 tonne per day gasification solution. This project currently is being developed by Alter NRG through a subsidiary called Navitus Plasma.
- Completed the necessary technical work with Coen Company, Inc., a leading boiler burner manufacturer worldwide, to provide syngas as a viable replacement fuel to power plants that currently utilize fuel oil. We are in commercial discussions with several island nations to provide our fuel replacement solution that delivers significant economic and environmental benefits.
- 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 will 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 Solution. This includes exclusive license agreements for territories that are in advanced negotiations.
- Announced the sale of CleanEnergy, the Corporation's geoexchange division, for $5 million so that the Corporation could focus exclusively on the plasma gasification business. The transaction is expected to close in May of 2012.
- Hired Walter Howard as Chief Executive Officer. Mr. Howard brings more than 30 years of global project development experience, specifically renewable energy experience including energy-from-waste, wind and water projects. Within these industries Mr. Howard has successfully executed technology development and implementation, project development and execution, as well as project finance.
I want to start my message by saying that I am privileged to assume the role of CEO of Alter NRG Corp. following Mark Montemurro, who led the Corporation since its founding in 2006. Under his leadership, the Corporation developed an excellent platform for growth. I was compelled to join Alter NRG Corp. because of the technology - it genuinely is world class and can change the face of the industry.
While it's true that we live in fast-paced times, when markets expect quick, if not immediate, results, it would have been a mistake to rush to action simply to make a mark without first taking the time to investigate the present landscape of the Corporation. What I've happily discovered since coming aboard is that the staff at Alter NRG matches the quality of the technology. We are fortunate to have outstanding and dedicated professionals across all departments and locations. In this regard I am pleased to be working with a seasoned team that represents decades of experience in engineering, technology and business with a great mix of various fields of knowledge. We have what we need to take the Corporation to the next stage of growth.
I have not come to this role with a radically new vision for the Corporation, but with a sharply defined focus. We are a technology provider. Our focus is on plasma gasification technology for energy creation and as a solution to waste management issues. Our product is a solution to two of the most pressing problems of our time and our job now is to get that product into the hands of vetted advocates. We're on the right road in this regard. 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 and Chemicals, but to the industry as a whole. There is a consensus among leaders that Priority #1 for any company is excellence in execution and there has never been a time in our Corporation's history when this statement has been so meaningful. I understand the importance of integrating strategy and operations and in doing so creating sustainable excellence in performance. We know what is at stake and I have reorganized the team to make it happen efficiently.
We are committed to giving the market concrete value and have revised our sales strategy with clear and more targeted value propositions and better defined go-to-market strategies. We are focused on getting deals across the finish line. That means licensing deals, gasifier sales and engineering sales. We are approaching our business with discipline. Alter NRG is not a project development company and we do not provide project financing. However, our support and advice, and the ability to bring co-investors to our customer's projects does something that is critical - it provides our customers, who are the developers, a better certainty of getting their projects financed. When the core technology is in the middle of the structuring and ownership box, financiers gain confidence because they know we are invested beyond reputation in the long term success of the project.
This is the experience that I bring. Throughout my career in the energy technology sector I have been on both sides of this scenario. I have both provided, and raised project financing for natural gas, coal and wind projects for decades. With both broad and deep knowledge of the industry, I understand the model and I have the strategy to make this work. That matters because plasma gasification is a long-term story: there is no predicting the ups and downs of capital markets, but energy and waste management solutions are always in demand; critical demand in some cases and with a disciplined approach Alter NRG is uniquely positioned to grow and be successful, and to build value for our shareholders.
We are charting a path to success for our Corporation, our customers and our shareholders. Our team has the commitment and dedication to execute our strategic plan and I look forward to advancing the Alter NRG story with them and with you, our valued shareholders.
|SELECT FINANCIAL RESULTS ($)|
|Balance Sheet||March 31, 2012||December 31, 2011|
|Total assets||$ 59,479,199||$ 63,173,939|
|Income Statement||Three months ended|
|March 31, 2012||March 31, 2011|
|Sales||$ 1,378,457||$ 1,365,298|
|Loss from continuing operations||(2,593,108)||(2,456,772)|
|Loss from discontinued operations||(350,307)||(1,476,108)|
|Basic and diluted loss per share - continuing operations||(0.04)||(0.04)|
|Basic and diluted loss per share - discontinued operations||(0.01)||(0.02)|
For more information on the Corporation's financial results please visit www.alternrg.com or www.sedar.com to view Alter NRG's 2012 First 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.
Walt Howard, Chief Executive Officer
(403) 806-3877 firstname.lastname@example.org
Daniel Hay, Chief Financial Officer
(403) 214-4235 email@example.com