OCTOBER 2011

™

A GLOBAL OUTLOOKTECHNOLOGY | REVIEW | UPDATE

Westinghouse Co-location Opportunity

Technology Commercialization

Utashinai Visit

Flex Ethanol Testing

SPOTLIGHT

For our 4th edition of NRG Focus we will

continue to bring clarity to experiences and

activities that help optimize our

Westinghouse Plasma gasification

technology. In this issue, we will provide

updates on our Westinghouse Plasma

Center and its ability to produce clean

syngas – an essential building block for

energy and liquid fuel applications. As well,

we will touch on significant testing

milestones, project updates and the recent

visit to the Utashinai facility in Japan. It has

been a busy quarter and we are pleased to

share some of these activities through this

edition. Please read on and we hope you

enjoy this latest edition of NRG Focus.

From the team at Alter NRG

Content & Design: Alter NRG Corp. - Corporate Development Team

Past Issues: www.alternrg.com/investor_relations/presentations/publications

Alter NRG Corp. is a registered trademark. All other company and product names may be trademarks of their respective owners. The information contained herein cannot be reproduced in any format without legal permission from Alter NRG Corp., and is subject to change without notice. Copyright © 2011. All rights reserved.

Cover Photo: Exterior of Alter NRG’s state-of-the-art Facility in Madison, PA, USA

Contents

www.alternrg.com

Visit to Utashinai, Japan ______3

Flex Ethanol Testing ___________4

SPoTlIGhT oN

Co-location opportunity ____ 5-9• Choosing Westinghouse Plasma Center _______ 6

• Commercial Demonstration Facility _____________ 7

• Technology Commercialization __________________ 8

• Real-time Syngas Production _____________________ 9

Project Updates ___________10-11• Dufferin _______________________________________________ 10

• Air Products __________________________________________ 10

• Phoenix Energy _____________________________________ 11

ISSUE | OCTOBER 20112

Utashinai

JAPAN

Visit to Utashinai FacilityOn September 12, 2011, Ken Willis of Alter NRG hosted eight customers at

the Eco-Valley Facility in Utashinai, Japan. Attendees visited the facility to

witness the Westinghouse Plasma gasification technology operating

commercially firsthand.

Six delegates from Dufferin County, ontario attended including:

The delegates from Dufferin County, Ontario wanted to visit the Eco-Valley facility to see the

Westinghouse Plasma gasification technology operating in a commercial setting. Alter NRG’s

technology was selected as the keystone technology for an energy from waste facility at the

Dufferin Eco-Energy Park. The environmental screening process for the energy from waste

facility has commenced and is well underway.

Also, Alter NRG’s plasma gasification representative in the Czech Republic and Slovakia,

Petr Brenek of BKB Metal, hosted a client from the Czech Republic.

Alter NRG hosts customers and clients from all over the world at the Utashinai

facility typically once per year. If you are interested in visiting the site,

please contact Alter NRG for more information.

www.AlterNRG.com

● Mayor of Melancthon

● Mayor of Amaranth

● Deputy Mayor of East Garafraxa

● Director of Public Works, Dufferin County

● CDC Public Member

Eco-Valley Facility Visitors to Eco-Valley

3 NRG FOCUS | By alter nrg

Flex Ethanol

Australia is

developing a

project in

Melbourne,

Australia, where

it plans on

converting MSW,

tires and sewage

sludge into more

than 200 million

liters of ethanol

a year

Taking the necessary steps to bring the Flex Ethanol Australia Project to life includes

conducting a comprehensive test at the Westinghouse Plasma Center & Coskata’s co-

located semi-commercial facility to test the suitability of Australian-specific household waste

for ethanol production. Testing was recently conducted at the Westinghouse Plasma Center

with successful results.

The results of the test will be used by the Flex Ethanol Australia project engineering team to

understand the equipment needed for the commercial project, refine the facility design

and operation.

About Flex Ethanol Australia ● GM Holden, Caltex and Phoenix Energy (Alter NRG technology licensee in Australia)

partnering on project

● Flex Ethanol Australia is a new company that has been formed to prepare for commercial

production of ethanol from household waste for use in Australian cars.

● The facility will ultimately be capable of turning up to one million tonnes of household

rubbish and building waste into more than 200 million liters of ethanol each year

● One of Flex Ethanol Australia’s first steps in project development is a test at the

Westinghouse Plasma Center to determine the suitability of Australian household waste

for ethanol production.

Westinghouse Plasma Ethanol Testing Success

“The testing data has been essential to the project

engineering team as we refine the commercial plant

design, to gain operational efficiencies and reduce

the overall capital of our 200 million liter per year

waste-to-ethanol facility.

-Phoenix Energy (Australia)

Key Stakeholders

ISSUE | OCTOBER 20114

We are seeking a technology that would utilize the syngas we generate on-site using the Westinghouse Plasma gasification

technology to feed a complementary recipient technology, such as:

A World Class Co-Location Opportunity

Westinghouse Plasma Corporation is currently running a strategic process

to co-locate one or more syngas recipient technologies at the

Westinghouse Plasma Center in Madison, Pennsylvania, USA

If you are interested in having your technology located at the

Westinghouse Plasma Center, please contact Bruce leonard,

Manager Corporate Development at Alter NRG for more details.

Bruce leonard Manager, Corporate Development

Alter NRG Corp., 215, 4000 – 4th Street SE Calgary, Alberta T2G 2W3

Phone: 403.214.4211, Fax: 403.806.3721Email: bleonard@alternrg.ca

SPOTLIGHT

Electricity generation

● Gas Turbines

● Steam Turbines

● Engines

● Fuel Cells

● Micro Turbines

Synthetic fuels

● Ethanol

● hydrogen

● Methanol

● Diesel

5 NRG FOCUS | By alter nrg

Commercial Demonstration Facility Process Flow Diagram

Over 125 tests have been conducted at the Westinghouse Plasma

Commercial Demonstration Facility producing clean syngas

• Capable of processing multiple feedstocks in blended or pure form

Plasma Gasifier

• Clean Syngas

• Ability to tailor the syngas composition to the specification of the recipient technology

Syngas Cleanup

Feedstocks Flexibility

● Refuse Derived Fuel

● Simulated MSW

● Hazardous wastes and simulated

hazardous wastes

● Coal

● Biomass

● Oily Sludge

● Excavated Landfill Material

(ELM) - PCB disposal

● MSW Fly Ash

● Ferro-Nickel

● High Quartz Iron Ore

● Black Liquor

● Tire Derived Fuel

● Iron Borings

● Iron Oxide

● Iron Bearing Pellets

Note: Feedstocks can also be blended and mixed for testing at the Pilot Plant. Feedstocks listed as waste must be chemically and physically simulated.

The Westinghouse Plasma Center’s operations validate our technical performance projections as well as the plasma gasification island and syngas clean up capability. This significantly reduces risks associated with the full scale commercialization of projects.

More than 100 distinct types of feedstock have been tested at the

Westinghouse Plasma Commercial Demonstration Facility including:

ISSUE | OCTOBER 20116

The Westinghouse Plasma Center is the only facility in North

America capable of creating a clean syngas from a variety of

feedstocks (municipal solid waste, biomass, e-waste, medical

waste, sludges etc.) that can be tailored to meet your

technology’s specifications. Several benefits of co-locating a

technology at the Westinghouse Plasma Center exist, including:

1. Transition a technology from lab scale to a commercial demonstration

2. Perform specific testing to optimize the design and operation of current or future products or facilities

3. Gain access to world class exposure and business development opportunities

● Investors, project developers, Fortune 500 clients and

politicians visit the Westinghouse Plasma Center to see

the technology in action

● Access to Westinghouse Plasma Corp.’s multi-billion

dollar sales pipeline

Why choose the Westinghouse Plasma Center?

The Westinghouse Plasma gasification technology has processed over 100

different feedstocks in blended or pure form. The syngas composition can

be tailored to meet the specifications of the downstream application

Location

Adjacent to the Westinghouse Plasma Corp.’s

Pilot Plant in Madison, Pennsylvania

Advantages

●● Clean syngas generated on demand.

The syngas can be stored onsite and consumed

as needed

●● Capable of generating clean, cool, compressed

syngas from a wide variety of feedstocks

●● Syngas analysis capabilities onsite

●● 1 hour drive from Pittsburgh International

Airport

Site Available

As early as Q1 2012

SItelocatIon

The Westinghouse Plasma Center

7 NRG FOCUS | By alter nrg

Technology Commercialization

Second Generation Cellulosic Ethanol Technology at the Westinghouse Plasma Center

Coskata’s cellulosic ethanol semi-commercial facility is located adjacent to the

Westinghouse Plasma Center where the syngas can either be piped directly into the

bio-reactor to create ethanol or stored for later use. Coskata’s microorganisms

convert the Westinghouse Plasma made syngas into ethanol by consuming the

carbon monoxide (CO) and hydrogen (H2) in the gas stream.

Westinghouse Plasma has conducted 35 tests since Coskata has been on-site. With

each test, Coskata’s technology moved one step closer to becoming commercial.

Initially, the technology was a ‘start-up’ technology that was proven in a laboratory.

The semi-commercial facility has validated to investors and government agencies that

the technology is proven and as a result Coskata is now focusing on commercial

facilities.

What started as a concept is now a commercial reality:

The Process

The semi-commercial

facility has taken

Coskata’s technology

from the laboratory

to the world stage

“The Westinghouse Plasma

Center has allowed Coskata

to successfully scale our

cellulosic ethanol technology

from a laboratory setting to

a commercial demonstration.

The Westinghouse Plasma

gasification technology

was able to create syngas

from a variety of feedstocks

that met our specifications.

Furthermore, the world wide

exposure that our ethanol

technology has received

while being co-located at

at the Westinghouse Plasma

Center has provided Coskata

with some very promising

commercial opportunities that

are now under development.

- James Fawley, VP, Strategic

Business Development

ISSUE | OCTOBER 20118

Real-time Syngas Production

Supports the Development of an Energy from Waste facility in the UK

The Tees Valley commercial facility will be capable of processing 950 tonnes per

day of non-recyclable waste using the Westinghouse Plasma gasification

technology. The facility is planning on producing 49MW of electricity through a

combined cycle process – the first of its kind Energy from Waste plant in the world.

Conducting tests at the Westinghouse Plasma Commercial Demonstration facility

has been imperative to the successful engineering and development of the Tees

Valley Project.

Using the similar calorific value and composition of waste that will be processed at

the commercial facility, testing was conducted at the Westinghouse Plasma

Commercial Demonstration Facility where the resultant syngas was captured for

testing. The testing results are used to determine:

● Particulate characteristics of the syngas which is taken into account for equipment

design and selection of the commercial facility

● Slag composition and leaching tests are used for the environmental permitting of

the facility

The Westinghouse

Plasma Commercial

Demonstration

Facility has been

instrumental in

helping Air Products

develop their Energy

from Waste

combined cycle

facility in Tees

Valley, UK

The continuous feedback loop between testing at the Westinghouse Plasma Center and the project

developer results in an optimized design:

Westinghouse Plasma Center Demonstration Facility, Madison, Pennsylvania

Tees Valley Project, UK

9 NRG FOCUS | By alter nrg

Project Updates

Dufferin Project:Environmental Screening ProcessNavitus Plasma Inc. (Navitus) is moving

forward on its Environmental Screening

Process for the Dufferin County energy from

waste facility that will utilize the

commercially proven Westinghouse Plasma

Gasification

technology.

The Environmental

Screening Process

assesses the potential

environmental effects

of the Project during

construction, operation

and decommissioning,

as defined in the

Ontario Environmental Assessment Act. Opportunities

to discuss the Project will be provided throughout the

Environmental Screening process and will be

advertised in local newspapers, on this website and

by direct mail-out. To communicate your questions or

comments or to be added to our Project distribution

list please visit www.navitusplasma.com. The first

public consultation and information session is

expected to be held in Q4 of 2011.

The overall results of the Environmental Screening

Process will be documented in an Environmental

Screening Report which will be released for public

review. It is anticipated the Report will be released in

Q1 or early in Q2 of 2012. Construction on the facility

is targeted to start in the fall of 2012.

Application for the necessary air and water

certificates will be made simultaneously and parallel

to the Environmental

Screening Process.

Air Products secures planning permission for the Tees Valley Renewable Energy FacilityAir Products has secured planning

permission from Stockton on Tees Borough

Council for its Tees Valley Renewable

Energy Facility. The facility is the first of a

number of energy from waste plants that

Air Products will be looking to develop in

the UK over the next few years.

The UK is seeking more sustainable ways to manage

and dispose of its waste, and is looking to diversify its

sources of electricity generation: our technology is

able to deliver on both counts commented Ian, “In the

longer-term, our technology can also produce

renewable hydrogen and is being considered for a

demonstration of Waste2Tricity’s alkaline fuel cell

technology to generate electricity. So our renewable

energy facility could also play a part in the further

development of the hydrogen economy, an area in

which Air Products already has

considerable experience.”

Liaison and discussions

with agencies, the

public and Aboriginal

communities will be

an integral part of the

Screening Process and

to make sure that they

are provided with the

necessary assurances that

the project is viable and

safe to the environment “Air Products, along with our technology

partner, Alter NRG, see Tees Valley

as the first of a number of advanced

gasification facilities that we wish to

develop in the UK.

- Ian Williamson, European Hydrogen

and Bioenergy Director, Air Products

ISSUE | OCTOBER 201110

Phoenix Energy (formally Moltoni Energy) advances Australia’s first major thermal energy from waste facility in Kwinana

In addition to the Flex Ethanol Australia project, Phoenix Energy, Alter NRG’s exclusive licensee in Australia,

is currently developing a $300-$400 million energy from waste plant in Kwinana, Australia. The facility has

completed the first stage of its engineering assessment and is now being commercially assessed.

The facility will incorporate two technologies: the main plant will use a Martin Grate high-temperature mass

combustion unit while the second much smaller plant will use the Westinghouse Plasma gasification

technology. The Martin Grate unit will process municipal solid waste and some commercial and industrial

waste while the Westinghouse Plasma gasification plant will process industrial waste generated from within

the Kwinana industrial area. The syngas generated from the plasma gasification process will be used in the

Martin Grate plant to augment firing conditions.

High-temperature steam and/or electricity for the local grid could be produced from the Martin Grate unit

while one of the by-products of the plasma gasification process would include slag suitable for paving and

other applications.

If the Kwinana energy from waste project proves to be commercially and technically viable, Phoenix Energy

will then consult with local communities and undertake a

detailed facility design.

Artist Rendition of Phoenix Energy’s Proposed Facility

“As this will be the first facility of this type in Australia, the

facility will also create a knowledge base among local

contractors and engineering firms that will become sought

after by other states as they begin to adopt a proven solution

that has been deployed around the world for years.

- Peter Dyson, Managing Director,

Phoenix Energy

“Assuming the project continues to be viable

through the various gateways, we would

expect commissioning to occur in 2014 or

early 2015.

- Peter Dyson, Managing Director,

Phoenix Energy.

11 NRG FOCUS | By alter nrg

www.alternrg.com

Alter NRG provides clean energy

solutions that are economically viable

and environmentally sustainable.

Westinghouse Plasma Corp.

The industry leading plasma gasification

technology that provides clean and

renewable energy solutions by converting

all types of waste and biomass into high

value energy - like electricity, ethanol or

syngas. With plasma systems in operation for

20 years and converting waste into energy

since 2002, the technology is commercially

proven and produces lower emissions than

other conventional energy technologies.