TSE: NRG | OTC: ANRGF
Alter NRG sells plasma gasification solutions that convert waste-to-energy (WTE), generating synthetic fuels from municipal waste. Gasification is a process that uses extremely high temperature plasma torches but it is not incineration. The technology was developed over the last few decades by Westinghouse Plasma Corporation. That business unit was spun out and then later acquired in its entirety by Alter NRG. Alter NRG has been restructuring the company to focus exclusively on gasification. This has included selling off a coal property and moving the geoexchange business into a separate entity of which Alter NRG is the primary shareholder.
In December 2011 the company announced that it had signed a deal with Air Products for a $22MM gasifier to be located in Tees Valley in the UK. This is the first of five that Air Products intends to build and is representative of the type of larger deal that Alter NRG is currently pursuing. A recent restructuring of the management team and tightening of the business focus has probably contributed to the stock trading recently to all time lows. The depressed stock price and significant forward growth prospects appear to have created an opportunity for investors.
Highlights
Resources
Company web site
YouTube videos
Raymond James research reports
Quote for OTC listing (ANRGF)
DOE page on Alter NRG/Westinghouse Plasma
Partner sites/info: Air Products - Coen Company - Phoenix Energy - Plagazi - Rentech - SMS Infrastructure Ltd - Waste2Tricity
Charts: Daily - Weekly
Other Gasification Companies: Enerkem | Plasco Energy Group | Plasma Power, LLC | Recovered Energy, Inc. | PyroGenesis | Spreadsheet - Gasification Companies
Other Resources:
Cleantechnica | Hydrogen Fuel News
CEO's Message from Q2 2012 Report
Late last year we announced the sale of a full-scale gasifier to a large Fortune 500 Company which I believe was a major commercial tipping point. The Tees Valley project is providing us the opportunity to substantiate our technology and engineering in a very big way - not only to Air Products and Chemicals, but to the industry as a whole.
It is a paradigm shifting project in many ways:
It is at a much larger scale than previous projects, taking approximately 1,000 tonnes per day of household waste.This is also a meaningful project for the energy sector as a whole producing 49 MW, which is enough electricity for 50,000 homes.It is using a more advanced power generation system, through its combined cycle configuration, which provides greater energy efficiency and cleanliness.It is being advanced by a well respected industry leader.This project has provided the tipping point that has brought us many opportunities that we intend to translate into shareholder value. We are the clear industry leader that provides a solution to both large-scale waste management challenges, but also our increasing need for energy.
The tipping point was not just reached by a single project. The success story was supported by 20 years of innovative thinking, R&D and hard work by many people inside of Westinghouse, and also Alter NRG. Our commercial facilities in Japan and India are a crucial part of that history and continue to play a vital role in our advancement. We continue to take potential customers to these facilities so they can witness firsthand the technology in action, however, the customers today are much more sophisticated and well funded than before. In this difficult capital market environment our strategy is to continue to partner with companies that have the proven capability and the capital available to execute.
The good news is that large, capable companies are actively seeking out our technology. That is tempered by the reality that these are long lead time projects and will take time to develop. Therefore, the fact that we are past a tipping point will be most clear in hindsight in the future. Two new facilities are currently under construction in China (both with numerous follow-on opportunities), two additional facilities are now in regulatory approvals in India by our strategic customer in that jurisdiction, and our Fortune 500 partner in England has publicly stated its intention to continue to develop additional facilities. We are past the tipping point and are now looking to add to our list of capable strategic customers.
Part of our growth will be co-investment into projects that are being developed by capable partners and have strong financial returns. We are not the developer - that is a time-consuming and often expensive process best left to larger institutions and specialized (often local) teams. We have options to invest along-side the developer once the projects have achieved their major commercial milestones. I have built a career financing energy projects and believe this an area where we can add significant shareholder value.
Plasma gasification is a long-term story but having hit the commercial tipping point provides me optimism that we will execute on significant commercial contracts in the latter half of 2012 and into 2013. There is no predicting the ups and downs of capital markets, but energy and waste management solutions are in demand; critical demand in some cases and with a disciplined approach Alter NRG is uniquely positioned to grow and be successful, and to build value for our shareholders. We are charting a path to success for our Corporation, our customers and our shareholders. |
