News Column

Alter NRG reports First Quarter 2014 Activities and Financial Results and Schedules First Quarter Results Conference Call for May 15, 2014

May 12, 2014

TSX - NRG

OTCQX - ANRGF

CALGARY, May 12, 2014 /CNW/ - (TSX - NRG) (OTCQX - ANRGF) -Alter NRG Corp., ("Alter NRG" or the "Company") is pleased to report on its corporate activities and financial results for the three month period ended March 31, 2014. Walter Howard, CEO of Alter NRG, will host a conference call on Thursday May 15th at 10:00AM MT (12:00PM ET) to discuss first quarter financial results.

The conference call will include a brief presentation about Alter NRG's first quarter and then a question and answer period with management.

Investors can access the call by dialing toll free 1-877-974-0445 and entering Conference ID# 4683328. International callers can dial 1-416-644-3415 and use the same passcode.

The call will be available for replay immediately following the call by dialing toll free 1-877-289-8525 or 416-640-1917.  The replay will require use of Access Code: 4683328#

The call can also be accessed through Alter NRG's Investor Relations section of its website.

Management will accept questions by telephone during the live call and by e-mail. Individuals can email questions in advance or during the conference call to dhay@alternrg.ca.


Q1 HIGHLIGHTS

•Sales of $6.2 million which is an increase over the same period of the prior year of 42%.This revenue increase reflects the maturing business plan for the Westinghouse Plasma Technology. Currently there are five separate facilities being constructed or commissioned. The Westinghouse Plasma Technology continues to be the market leader in terms of reference facilities and commercial experience in next-generation waste-to-energy solutions.



•Continued fabrication and execution on a US$21 million purchase order for Air Products, a US based Fortune 500 Company. This is the fabrication of a second facility in the Tees Valley, England area. The first facility has been constructed and is beginning commissioning. Both facilities are using the Westinghouse Plasma Solution to convert 950 tonnes per day of household waste into 50MW of electricity in Northeast England.



•In February 2014, the Company announced a US$15 million sale of the Westinghouse Plasma Solution in Bijie China. The project is anticipated to take 600 tonnes per day of waste and convert it into electricity. Final government environmental approvals have been obtained and the project has started the detailed engineering and site preparation. The Company expects to begin fabrication of the equipment in the second quarter of 2014. The project is being advanced by Green Environmental Solutions, and this is the first of many similar projects being advanced by them in Southern China.



•Supported the commissioning of a hazardous waste destruction facility in Shanghai China being constructed by GTS Energy. In addition, the Company signed a joint development and marketing agreement which provides for worldwide selling and marketing rights for the sale of turn-key waste to energy destruction units. The facility has completed construction and had its grand opening in February. This reference facility complements the incineration market as it turns a hazardous ash into an environmentally friendly slag and provides increased energy production.



•Announced the Marc 4.5 Westinghouse Plasma torch which provides up to 40% greater overall torch efficiency when utilized in the large scale 1,000 tonnes per day Westinghouse G65 Plasma Gasifier. In addition to supporting Westinghouse Plasma waste-to-energy facilities, the newly designed torch satisfies a market demand for an efficient and clean heat source for metallurgical recycling, blast- furnaces, foundry cupolas, iron making and other industries using coal, coke, or higher cost fuels.



•Signed an agreement in 2013 to provide US$12 million of Westinghouse Plasma Torches to Beijing Huanyu GuanChuan Plasma Technology Ltd. ("GuanChuan"). During the first quarter of 2013, GuanChuan placed an approximate US$1 million order for the first four plasma torches which were delivered in late 2013. GuanChuan is using the plasma torches in industrial furnace applications for the steel and iron industry in China which is a promising growth market. The first sale is in testing phase and represents a reference case for the industry. Based on initial interest generated by this demonstration facility GuanChuan is expected to order further plasma torches in 2014 and beyond.



•Advanced business development efforts with SMS Infrastructure ("SMS") on several projects and worked with them to expand marketing efforts. Previously, SMS constructed two hazardous waste facilities utilizing the Westinghouse Plasma Solution. SMS is developing and marketing in India and the Middle East hazardous waste treatment facilities between 30 and 100 tonnes per day. SMS provides turn-key hazardous waste facilities to the market using the Westinghouse Plasma Solution and has approximately 140 people in their gasification division. SMS continues to market and sell smaller scale facilities using the Westinghouse Plasma Solution.



•Advanced business development efforts with Waste2Tricity supporting a 100,000 tonnes per annum project in England, as well as an exclusive license in the Thailand market for US$2 million. Waste2Tricity has been developing several projects in Thailand and the project in England which has advanced a concept design study. Waste2Tricity has a common shareholder with Alter NRG, Ervington Investments Limited which is a company that has Roman Abramovich as its ultimate beneficial owner.



•Wuhan Kaidi ("Kaidi") completed construction of its demonstration facility in China and the Westinghouse Plasma Solution was commissioned during the first quarter of 2013. The facility is expected to process 100 tonnes per day of biomass waste and convert it into liquid fuels. Recently, Kaidi purchased the Rentech liquids conversion technology to convert the syngas into liquid fuels which is a promising step forward for the demonstration project. Alter NRG is currently advancing technology licensing, engineering support and equipment purchase agreements with Kaidi.



•Supported business development efforts for a project in Barbados which is expected to take approximately 600 tonnes per day of the islands waste and convert it to electricity. The project is anticipated to provide up to 25% of the electricity for the island and replace the expensive fossil fuels currently used.



•Continued due diligence and financing efforts related to the Company's investment options in current projects as well as supporting developers in the late stages of development. These relationships allow for participation in the annuity cashflow of projects through a partnership structure. These relationships are favorable for the Company 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 Solution. This includes exclusive license agreements for territories that are in advanced negotiations as well as projects which are undertaking engineering and are in regulatory approval processes.






CORPORATE

•In February of 2014, the Company closed a financing of common shares for $5 million at a price of $0.64 per common share. The strengthened balance sheet in conjunction with the orders in late 2013 and early 2014 put the Company in a strong financial position.



•Announced the implementation of a Strategic Advisory Group which includes industry experts for various market segments including conversion of syngas to liquids fuels, waste-to-energy facilities in Europe, and the use of plasma torches for industrial and metallurgical applications.

CEO'S MESSAGE

In our last annual report, I talked about our commercial momentum and its acceleration. I am pleased to say this trend in continuing with new projects, new relationships and with external awards. Recently I have been in China with the sales team and seeing the response to our technology firsthand has been encouraging. This is predicated on the fact that we solve real-world issues by i) eliminating waste and keeping it out of landfills and ii) enabling creation of multiple types of clean energy in a world with increasing energy needs. With an industry leading technology, a large pipeline and a dedicated team I believe the commercial momentum will continue to accelerate.

As I travel with our team, it becomes readily apparent just how many problems our technology can solve, and how prevalent these problems are. As I toured the recently commissioned facility in Shanghai, constructed by GTS Energy, I was able to witness a facility that is eliminating hazardous waste streams and at the same time improving the operating performance of an existing incinerator. That is good for the planet, but also makes financial sense as they are able to reduce their disposal costs of waste and increase their revenues. Most importantly, this is a turn-key facility that can be replicated almost anywhere hazardous waste is an issue (which is any industrialized country). With our recent joint development agreement with the developer, GTS Energy, we have the opportunity to sell these turn-key facilities worldwide and believe this will be a significant growth area.

At the same time, I was able to meet with other companies that are focused on turning waste into clean forms of energy. This included Kaidi who has built a demonstration which takes waste biomass and turns it into diesel fuel.  With their recent acquisition of the Rentech technology, an industry leading diesel conversion technology, they are positioned to move forward aggressively to build larger waste-to-liquid facilities. I was also able to visit with Green Environmental Energy Limited; the client that we announced made a US$15 million dollar purchase of our large gasifier in Bijie. They were excited as they had now received all environmental approvals and had their ribbon cutting ceremony. Lastly, I met with several other companies which form part of our pipeline and provide many other opportunities which I hope to tell you more about in the coming quarters.

Of course, the 950 tonne per day facility that is currently being commissioned in Tees Valley England is still a flagship facility that the world is watching. With higher efficiency and best-in-class environmental performance it is truly an industry changing event.  The commissioning of a large-scale energy facility is a major process and when the facility is operational near the end of 2014, it will further accelerate the commercial momentum. The fact Air Products ordered a second gasifier from us and is advancing a second replica project on the adjacent site speaks volumes to their confidence in our technology. This has been recognized by other industry leading companies and our pipeline continues to grow.

Commercial momentum is also evidenced in other ways. The IAIR awards are one of the industry's most prestigious award and we were honored to receive this award for the best clean-tech company for Canada. I was also individually honored with the Roy F. Weston Award by the Journal of Solid Waste Technology and Management which acknowledges significant contributions to the field of industrial waste management. It has been gratifying to see that our execution and the current 5 projects under construction or commissioning using our technology are getting the attention they deserve.

We appreciate the support from our investors as we continue our journey past the tipping point, and continue to develop commercial momentum through increased market penetration. I believe 2014 will be an exciting year as our momentum continues to increase and our growth is supported by a strong management and technical team and a recently strengthened balance sheet. The best is yet to come.

SELECT FINANCIAL RESULTS ($)

Balance Sheet

March 31, 2014

December 31, 2013







Total assets

$ 67,186,085

$ 56,944,155

Total liabilities

27,266,504

21,099,322

Total equity

39,919,581

35,844,833

















Income Statement



Three months ended







March 31,

2014

March 31,

2013











Sales





$ 6,187,701

$ 4,365,811

Gross profit





736,134

689,556

Loss from operations





(1,752,460)

(1,759,229)

Basic and diluted loss per share, operations





(0.02)

(0.02)

Total comprehensive loss





(1,236,994)

(1,458,964)

Basic and diluted loss per share, comprehensive loss





(0.01)

(0.02)



For more information on the Company's financial results please visit www.alternrg.com or www.sedar.com to view Alter NRG's 2014 First Quarter Report.

ABOUT ALTER NRG

Alter NRG provides alternative energy solutions to meet the growing demand for environmentally responsible and economically viable energy in world markets. Alter NRG's primary objective is to further commercialize the Westinghouse Plasma Gasification Technology, through its wholly owned subsidiary, to provide renewable and clean energy solutions from a wide variety of feedstocks, and provide a wide variety of energy outputs - including liquid fuels like ethanol and diesel, electrical power, and syngas.

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", "objective", "may", "will", "believe", "intends", "hope", 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 Company'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 Company'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 Company. 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 Company's Annual Information Form dated March 27, 2014 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 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.

SOURCE Alter NRG Corp.


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