Alter NRG Advancing Gasification Projects

Alter NRG Corporation (TSX: NRG; OTCQX: ANRGF), an alternative energy company engaged in the commercialization of plasma gasification as a viable energy source, announced its second quarter 2009 earnings and activities on August 14th. While Alter NRG is still an early stage company (it went public in April 2007), it has been advancing a number of promising engineering projects with industry-leading partners including its coal-retrofit partner, NRG Energy (NYSE: NRG), who is working to further the development of retrofitting its Somerset, Massachusetts, coal power facility. NRG Energy is the world’s seventh largest independent power producer. The Somerset Station retrofit project, the first of its kind in North America, will provide Alter NRG with a technology sale of approximately $40 million.

Alter NRG owns a proprietary plasma-based gasification technology developed by its wholly owned subsidiary, Westinghouse Plasma Corporation (WPC), for converting various feedstocks into commercial syngas. (The process can even convert waste to energy, providing an alternative to landfills.) In many cases, the syngas can be produced at a lower operating cost of $2 to $4 per MMBtu, net of by-product revenues, and provides a fixed cost of energy in volatile commodity markets.

During the second quarter, Alter NRG substantially completed the construction of Project Lighthouse, a commercial demonstration facility developed by Coskata Inc. (Coskata) that uses the Westinghouse Plasma Corporation (WPC) gasification solution to turn biomass into ethanol. The 40,000 gallon-per-year cellulosic ethanol facility will begin operation in the third quarter 2009 and represents a significant milestone in the development of cellulosic ethanol from non-food feedstocks. This commercial demonstration will increase the utilization rate of the WPC gasification facility and is anticipated to provide approximately $3 million in revenue to the Company during 2009.

Coskata, a developer of next generation biofuels, has partnered with General Motors, who will use the next-generation ethanol produced at the demonstration facility at their Milford Proving Grounds to run in their E85 capable fleet of vehicles.

Other activities reported by Alter NRG for the second quarter include:

Announced the signing of an alliance agreement with Uhde Engineering Consulting (Shanghai) Co. to provide engineering services, marketing services and jointly pursue business opportunities predominantly in the Asia Pacific region, including China. This alliance agreement provides Alter NRG presence on the ground in China and Southeast Asia through a well respected and capable engineering firm.

Travelled to China to follow up on interest generated from the initial visit in Q1 of this year. Alter NRG is currently advancing discussions with numerous large, credible Chinese companies and advancing a signed memorandum of understanding into a definitive agreement. The interest in China and Southeast Asia for the Westinghouse technology has been significant and the central government has aggressive plans to utilize renewable energy solutions.

Continued the commissioning of the world’s largest hazardous waste-to-energy (WTE) facility in Pune, India. The facility is working through commissioning and expects to be operational in late Q3 or Q4 of this year.

Advanced discussions in the European market with sizeable companies, respected engineering firms and governments that are looking for renewable energy alternatives. This has resulted in advancing submissions into several WTE projects in the UK and EU, being shortlisted for plasma projects in advanced stages of regulatory approval and also advancing project developments with strategic partners in the area. The European market has very favorable incentives and regulatory framework.

Advanced commercial discussions for a 75 tonne per day WTE project located in Dufferin County, Ontario. Alter NRG submitted into a request for proposal process and was selected as the technology provider.

Alter NRG continues to advance discussions with industry-leading engineering companies, well-capitalized energy companies and project developers who have interest in the Westinghouse technology. According to the Gasification Technologies Council, worldwide gasification capacity is projected to grow 70 percent by 2015. With their strong Westinghouse brand and commercially proven technology, Alter NRG is well-positioned to capitalize on the growing demand for clean energy solutions.

Disclosure:  Alter NRG Corporation is a client of RedChip Companies, Inc.  RedChip Companies, Inc., employees and affiliates may have positions and affect transactions in the securities or options of the issuers mentioned herein. For full financial disclosures for all RedChip clients, please visit http://www.redchip.com/disclosures.asp?src=rcv.