First Quarter Of 2009 Highlights:
Announced strategic alliance with Air Products an Chemicals, Inc, (Air Products) for the development of renewable energy facilities in North America and Europe. Air Products is a recognized global leader in industrial gases and a Fortune 500 company.
Advanced construction of Project Lighthouse, a commercial demonstration facility developed by Coskata Inc. (Coskata) that uses the WPC gasification solution to turn biomass into ethanol. Coskata was recently named one of the 50 Hottest Companies in Bioenergy.
Advanced discussions in Europe with companies progressing with waste and renewable energy projects. The response was very positive and resulted in commercial discussions with several different companies. This includes two developers entering proposals for waste projects, providing a commercial proposal for a waste-to-energy facility in Turkey, entering final round technology discussions for a project in Spain, as well as other commercial discussions.
Management travelled to China for the first time and received very positive interest and is currently advancing commercial discussions with strategic partners advancing waste and biomass clean energy projects including the signing of a memorandum of understanding. The Chinese have current plans to focus on cleaner energy and waste to energy solutions for which the Westinghouse brand is well recognized.
Operations underway at the first of two commercial hazardous waste to energy facilities in India being operated by SMS Infrastructures, one of India’s leading engineering companies. The facility is operational and is expected to be running at capacity during the third quarter of this year.
Increased plasma technology sales and service revenue for the quarter to CAD1.1 million from CAD0.7 million in the first quarter of 2008, a 57% increase. The current sales are primarily for engineering services to advance commercial projects with technology equipment sale generally ranging from CAD10 to CAD50 million upon successful development.
The company continued to advance 12 projects to the engineering stage. Nine opportunities are located in the US, one in Europe and two in Southeast Asia.
President’s Message:
The development of renewable and alternative energy projects will continue to move forward despite the current economic challenges as governments from around the world have committed more than CAD200 billion toward technologies that cut the dependence on fossil fuels.
We are seeing utilities look to not only reduce their emissions but increase their use of renewables. With the US, Europe and Asia having developed more than 250 policies since July 2008 that support alternative energy, the strongest governments in the world are creating an ideal landscape for our commercially proven, clean energy solutions. There will be an end to this current financial down turn and those of us coming out of the other side will be better and more resilient than before.
A significant opportunity for Alter NRG is underway at our Waltz Mill, Pennsylvania site as Coskata moves forward with their first commercial demonstration scale cellulosic ethanol plant. The project is projected to initiate operations this summer. Syngas converted from biomass in our gasifier provides a key component to Coskata’s ethanol conversion process. The success of this project is expected to create significant visibility and lead the way to numerous commercial installations across North America.
We are strategically expanding our efforts in Europe, an area that considers our technology to be advanced. Europe offers a very favorable environment as it focuses, through incentives, on the removal of market barriers, changing behavior, creating a more favorable business environment for increasing energy efficiency and renewable energy technologies markets. There are numerous developers active in the UK, Italy and Spain with submissions and projects advancing.
Strategic partnership development progressed with our recent management trip to China, which had a waste-to-energy (WTE) focus. The Westinghouse brand is well recognized and has opened the door to some very promising leads which leaves us optimistic and focused on this fast-moving market.
Despite providing a more difficult regulatory regime to navigate, projects also continue to progress in North America with NRG Energy, along with numerous other developers, advancing both coal retrofit and WTE projects.
Throughout 2009 we will remain focused on creating revenue from technology sales and licenses, as well as furthering our strategic partnerships and international opportunities.
