Alter NRG Corporation Shares Print Two Year Highs on New Contract

Alter NRG Corporation Shares Print Two Year Highs on New Contract

By: Tomas Ronolski - AllPennyStocks.com News

Friday, December 6, 2013

With global initiatives in constant motion, there will come a time when alternative energy solutions will be the norm, replacing the standards of today and transitioning the planet into a more efficient energy producer with lower negative impact on the environment. The countless applications of waste-to-energy make it a particularly interesting sector because of, as the name states, it serves the dual role of finding a useful purpose for garbage while reducing the world’s reliance on finite resources. Plasma gasification, a process of using plasma to convert organic matter into synthetic gas, slag and electricity, has been a popular topic lately, including a new license agreement announced on Friday between Calgary’s Alter NRG Corp. (TSX:NRG) and Waste2Tricity International (Thailand) Limited. NRG has commercialized its Westinghouse Plasma Gasification Technology as a green method to produce a variety of energy outputs from a wide spectrum of feedstocks. The Westinghouse Plasma Technology has been used in commercial facilities in Japan and India for more than a decade with new facilities being constructed in China and England as well. PGP Terminal AS has also purchased site licenses in the Czech Republic and Slovakia, with engineering on the first facilities expected to commence early in 2014.


The new agreement with Waste2Tricity is expanding NRG’s footprint into Thailand. Per the accord, Waste2Tricity is receiving an exclusive license to the Thailand markets for an initial term of five years at a cost of $2 million. In addition to the license fee and purchase of the requisite equipment, Waste2Tricity will pay NRG $3,500 per ton for site licenses and $5 for each ton of processed feedstock. During the initial five-year term, Waste2Tricity must order equipment for two facilities of a minimum of 250 tons per day in order to extend the exclusive license for another five years.

“I believe that this license is the first of several such opportunities in the Southeast Asian market which is attributable to population growth that creates significant waste challenges as well as increasing electricity needs. We look forward to working with Waste2Tricity in the development of numerous projects in the UK and Thailand,” said Walter Howard, chief executive at Alter NRG, in a statement today.

Amongst many other benefits in comparison to incineration facilities that are commonly used worldwide, Alter NRG’s plasma gasification facility lowers emissions and greenhouse gas output dramatically, while also producing particulate that can be recycled into a gasifier, meaning that material left-over that needs to head to the landfill is cut to only 2 percent of the original material. Perhaps surprisingly, up to 30 percent of the waste that is incinerated today still has to go to a landfill, and in many jurisdictions is classified as hazardous waste.

Waste2Tricity, which is headquartered in the United Kingdom, has roots with Alter NRG Corp. with its Waste2Tricity shareholders also holding a substantial stake in NRG.

Business has been expanding steadily at Alter NRG with sales of $11.2 million in the first nine months of 2013, bettering the sales in the same period of 2012 by 31 percent. In November, the company also signed a $21-million agreement with Air Products and Chemicals Inc. for a second plasma gasification facility in England.

The contracts are translating to a sharp rise in share value for Alter NRG Corp. Shares are up in Friday activity by 7 percent at 75 cents, marking their highest level in just over two years. Shares are up more than 103 percent so far in 2013.

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