Alter NRG to Supply 15 MW Plasma Gasification Waste to Energy Plant in China

Plasma gasification technology developer, Alter NRG, is to supply a gasifier to a 15 MW municipal solid waste to energy facility in the City of Bijie, China.

Plasma gasification technology developer, Alter NRG is to supply a gasifier to a 15 MW municipal solid waste to energy facility in the City of Bijie, China.

The company (TSX: NRG and OTCQX: ANRGF) said that it has signed a $15 million agreement with Bijie City Green Environmental Energy Limited (BGE) to provide a Westinghouse Plasma Gasification Solution to the facility.

The 600 tonne per day facility has been officially designated as a key project by the Provincial Government of Guizhou due to the anticipated environmental benefits.

Under the agreement, Alter NRG and its wholly owned subsidiary Westinghouse Plasma, will provide a site license, gasifier equipment, related control, instrumentation, and engineering services for approximately $15 million. 

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Alter NRG said that it expects to realise the majority of the revenue over the next 18 months, and has executed and received a mobilisation payment on the engineering contract and executed memorandums of understanding on the site license and equipment sale that will be finalised once final approvals are obtained. 

The final equipment package is subject to change based on the engineering work performed. The waste to energy project will not proceed past the engineering phase valued at approximately $1 million until final PRC approvals are obtained.

According to Alter NRG the project has progressed steadily through business development and environmental permitting for the past four years, and has obtained provincial approval and is awaiting the People's Republic of China (PRC) final approvals which are expected in Q2 of 2014.  #

The project intends to convert the vitrified slag output from the gasifier into block foam insulation which can be sold at a much higher sales value. 

BGE has patented a process which is claimed to convert the slag which has passed Chinese technical certification into foam insulation which can be sold as a Class A, non-combustible building material.

Following the initial start-up, which is expected in mid-2016, Alter NRG said that BGE intends to double the capacity of the facility with a second gasifier.

“This project will also provide a testing platform for clean coal applications,” commented Jeffery Hu, Principal at BGE.

Walter Howard, chief executive officer at Alter NRG added: "Having a simultaneous second large-scale project commencing is a significant commercial milestone as it will provide additional cash flow for 2014.

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