News Column

Alter NRG reports second quarter 2014 activities and financial results and schedules second quarter results conference call for August 11, 2014

August 7, 2014

TSX - NRG

OTCQX - ANRGF

CALGARY, Aug. 7, 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 and six months ended June 30, 2014. Walter Howard, CEO of Alter NRG, will host a conference call on Monday, August 11th at 11:00 AM ET (9AM MT) to discuss second quarter financial results.

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

Investors can access the call by dialing toll free 866-530-1554 or 416-849-1847 and reference conference ID 8700807.  

The live call can also be accessed through Alter NRG Investor Relations section of its website at http://www.alternrg.com.  A replay of the call will also become available on the AlterNRG website following the live call.

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

Q2 HIGHLIGHTS

•Sales of $8.1 million which is an increase of 86% over the same period of the prior year. This revenue increase reflects the maturing business plan of the Westinghouse Plasma Technology. Currently there are five separate facilities being constructed or commissioned with over $1 billion of total capital spending with the Westinghouse Plasma Solution as the core enabling technology. 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.



•Supported commissioning efforts at the first Tees Valley project being developed by Air Products, a Fortune 500 Company, which is completing final construction and has begun commissioning of the facility. Air Products expects the first plant to be in start-up phase in late 2014 and go into commercial operation in 2015. Once operational, the facility will generate 49MW of electricity from non- recyclable waste and produce enough reliable, controllable and renewable electricity to power up to 50,000 homes.



•Continued fabrication and execution on a US$21 million purchase order for Air Products for a second facility in Tees Valley, England. The second facility is on adjacent lands and of a similar size and configuration as the first facility. Alter NRG is approximately 65% done the fabrication efforts which will continue throughout 2014 for expected delivery before the end of 2014. Air Products has a dedicated business development team that continues to advance efforts on projects worldwide.



•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 are being finalized and the project has started the detailed engineering and site preparation. The fabrication of the equipment has been slightly delayed and is now expected by the end of the third 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 operated by GTS Energy. In the first quarter, 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 and Alter NRG is finalizing product specifications and marketing materials for this product. The facility has now been successfully commissioned and is actively touring customers around the reference facility. This reference facility complements the incineration market as it turns a hazardous incinerator fly-ash (as well as other hazardous waste) 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. These torches have been delivered to the Tees Valley site for commissioning.



•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 plasma torches have been installed and are expected to be commissioned and tested in the third quarter. This represents a significant 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 Waste2Tricity supporting business development efforts in England and Thailand. Last year, Alter NRG granted them an exclusive license in the Thailand market for US$2 million, for which they paid $1 million already and are expected to pay the remaining $1 million in December of 2014. Waste2Tricity has been developing several projects in Thailand and a project in England, which has advanced to 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 in 2013. The facility processes 100 tonnes per day of biomass waste and converts it into liquid fuels. Recently, Kaidi announced that it had 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 island's waste and convert it to electricity. Cahill Energy signed an agreement with the Government of Barbados on March 15, 2014 to build and operate a leading edge clean energy plant on the Caribbean island. Established to finance, build, own and operate utility-scale waste-to-energy plants in key markets, Cahill Energy plans to utilize the Westinghouse Plasma Technology to transform all kinds of waste on Barbados into clean, renewable energy. The project is expected to enter into engineering in 2014.



•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 $2.56 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.



•Announced the appointment of Scott Whitney to the Board of Directors. Scott was previously the President of Covanta, Europe and brings a wealth of contacts and industry knowledge in the waste-to-energy market.

CEO'S MESSAGE

In our last annual report, I talked about passing the tipping point and our commercial momentum and its acceleration. I am very encouraged by the tangible and meaningful markers of this commercial momentum this quarter which include an open house at the Tees Valley site with more than 100 participants from 15 different countries, beginning the commissioning of the world's largest plasma gasification facility in Tees Valley, and also advancing a commercial relationship with a leading turbine manufacturer related to our syngas being an acceptable fuel for their large fleet of gas turbines.  These are tangible and meaningful markers of the progress we are making.  Combined with our largest ever quarterly revenue of $8.1 million we are showing a positive trend for the future. With an industry leading technology, a large pipeline and a dedicated team I believe the commercial momentum will continue to accelerate. I often get the question "what is taking so long? You have a great technology and more and more reference facilities and so why doesn't every city adopt this?" The answer is complex. Adoption takes time for any technology simply because people want to see it in commercial operation, in the same configuration and at same scale as their potential project. That is our challenge but also our opportunity. We now are commissioning the world's largest next-generation facility which provides us that reference plant of meaningful size. This is replicable around the world for waste-to-energy facilities. I would like to refer you to page 6 of the quarterly report which has a photo of the Tees Valley site in April 2012, and then again at December 31, 2013 – although it seems slow the visual illustrates the enormity of what is happening there. Simply put, a lot of activity and a lot of momentum is building behind our technology.

In June we had an open house at the facility in Tees Valley I just mentioned. We had people from all corners of the world with over 100 people participating from 15 different countries. At this event, we had some of our key business partners presenting their business plans based on our technology and I know that people were impressed with the strength of those business plans. Our customers do not intend to build just one facility each, but have entire business plans to build facilities sequentially. It is great to see them putting steel in the ground today (with 5 facilities being constructed or commissioned) but even more rewarding are the opportunities opening in the future. You can see photos of groups (on page 13 of the quarterly report) from around the world that are working daily to advance their projects using our Westinghouse Plasma Technology.

The relationship with a leading turbine manufacturer  and having them conclude our syngas is usable in their turbines is something that may not be immediately valued by the capital market, but is something that is very meaningful. There are thousands of turbines operating all over the world and in many cases these operate on high cost fossil fuels like LNG, or Fuel Oil that can cost between $15 to $20 per Mmbtu. We can produce our syngas for less than $5 per Mmbtu which provides significant opportunity for any user of a gas turbine to lower their costs and improve profits. We are presenting a joint solution at the Abu Dhabi PowerGen conference in October and have already attracted customers looking at this very economic solution. This is a huge addressable market – stay tuned.

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

June 30, 2014

December 31, 2013







Total assets

$ 58,506,441

$ 56,944,155

Total liabilities

24,119,808

21,099,322

Total equity

34,386,633

35,844,833

















Income Statement

Three months ended

Six months ended



June 30, 2014

June 30, 2013

June 30, 2014

June 30,  2013











Sales

$ 8,096,191

$ 4,343,618

$ 14,283,892

$ 8,709,429

Gross profit

1,603,184

506,597

2,339,318

1,196,153

Loss from operations

(5,015,418)

(2,644,906)

(6,767,877)

(4,404,135)

Basic and diluted loss per share, operations

(0.18)

(0.10)

(0.24)

(0.18)

Total comprehensive loss

(5,742,293)

(2,158,057)

(6,979,286)

(3,617,021)

Basic and diluted loss per share, comprehensive loss

(0.21)

(0.08)

(0.25)

(0.15)

















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