Alter NRG has signed an agreement with Wuhan Kaidi to construct a demonstration facility and also a letter of intent (LOI) for licensing and development of future biomass-to-energy projects in the Chinese market.

Wuhan Kaidi expects to construct one facility, which can process approximately 50 to 100 tons per day of varying biomass materials before the end of 2010. Alter NRG will receive approximately $1m CDN in plasma torch orders and engineering services, access to all operational data from the facility and will establish fabrication capacity in the Chinese market through Kaidi.

Mark Montemurro, president and CEO of Alter NRG, said: “This is a significant milestone for our entry into the Chinese market. Kaidi is a respected and leading company that is planning to do multiple projects using our technology in the future and the initial capital investment into the small scale facility is a critical step as the Chinese market adopts technology quickly upon successful demonstration within the country.

“It has also been a strategic priority to develop fabrication capacity in the Chinese market for customers around the world and Kaidi has world-class fabrication capability and local relationships, which will help reduce costs for plasma gasification projects.”