TSXV - NRG

CALGARY, Jan. 31 /CNW/ - Alter Nrg Corp. ("Alter Nrg" or the "Company") is pleased to announce that it has entered into a Purchase and Sale Agreement with ERCO Worldwide, a division of Superior Plus LP ("ERCO Worldwide"), for the acquisition of a project site near Edmonton, Alberta (the "Project Site") by a subsidiary of Alter Nrg. Alter Nrg's subsidiary is paying $2.5 million for the Project Site and the transaction is occurring concurrently with the sale of ERCO's Salt Cavern Assets to Rotex Energy Ltd.

The Company plans to use the site to develop an IGCC (Integrated Gasification Combined Cycle) plant capable of producing electric power initially using natural gas that in the second phase will be substantially replaced by synthesis gas (syngas) produced using Alter Nrg's proprietary plasma gasification technology. The plant will be designed for CO(2) capture, with potential sequestration in oilfield miscible flood projects.

The Project Site is comprised of the former Bruderheim sodium chlorate facilities of ERCO Worldwide and includes much of the plant infrastructure, including buildings, water supply and cooling tower facilities, and is currently serviced by high voltage 138kV transmission lines and onsite substation, natural gas pipelines, and rail lines. The 30 acre site will need to be subdivided from the balance of the ERCO lands prior to transfer and closing.

Closing under the Purchase and Sale Agreement is conditional upon the satisfaction of conditions customary for transactions of this nature, including the completion of environmental studies and the receipt of subdivision approvals for the 30 acre Project Site, the receipt of all necessary third party and regulatory consents and approvals, and the final approval of the Superior Plus LP board of directors.

Alter Nrg anticipates closing of the Purchase and Sale Agreement will occur in the second quarter of 2008. Development, permitting and regulatory activities related to the proposed development of the IGCC plant will be initiated shortly thereafter. Development of the IGCC plant will involve local stakeholder consultation and will be in accordance with applicable regulatory requirements. Subject to receipt of the required permitting and regulatory approvals, financing, as well as equipment deliveries and construction schedules, the plant is expected to start producing electric power as early as Q4/2009 or early 2010.

It is anticipated that the IGCC plant will benefit from the environmental advantages of Alter Nrg's proprietary plasma gasification technology and will provide needed local area power generation, construction employment, as well as full time local area employment and economic benefits

This is Alter Nrg's first announced Canadian project, and the Company is anticipating preliminary project economics comparable to its U.S. joint venture projects. Further project details will be provided upon successful closing of the transaction and further project planning and detailed engineering.

"We are pleased to have the opportunity to acquire these assets from ERCO Worldwide. We are looking forward to the positive economic impact we can have in the local community and are pleased to apply our environmentally friendly technology in our home market," says Mark Montemurro, President and Chief Executive Officer of Alter Nrg.

ABOUT ALTER NRG

Alter Nrg is pursuing alternative energy solutions to meet the growing demand for environmentally responsible energy in world markets. The Company's vision is to become a North American leader in the development of innovative gasification projects for the commercial production of energy. The Company's objective for the next decade is to utilize our commercially proven plasma gasification technology to become a senior energy producer of hydrogen, syngas, and transportation fuels (diesel, naphtha, ethanol, etc.), steam and electricity, all of which are fundamental products for the world's growing energy needs.

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or accuracy of this release.

Advisory Respecting Forward-Looking Statements:

This news release contains certain forward-looking information and statements within the meaning of applicable securities laws. The use of any of the words "expect", "anticipate", "continue", "estimate", "objective", "ongoing", "may", "will", "project", "should", "believe", "plans", "intends", "confident", "might" and similar expressions are intended to identify forward-looking information or statements. In particular, but without limiting the foregoing, this news release contains forward-looking information and statements pertaining to the following: currency exchange rate fluctuations; environmental risks; unanticipated reclamation expenses; ability to finance; risk of obtaining regulatory approvals; ability to find joint venture partners; engineering and design risk; fluctuation in commodity prices and other expectations, beliefs, plans, goals, objectives, assumptions, information and statements about possible future events, conditions, results of operations or performance. Various assumptions were used in drawing the conclusions or making the projections contained in the forward-looking statements throughout this news release.

The forward-looking information and statements included in this news release are not guarantees of future performance and should not be unduly relied upon. Forward-looking statements are based on current expectations, estimates and projections that involve a number of risks and uncertainties including but not limited to: unexpected events during construction, and start-up; variations in feedstock grade; delay or failure to receive board or government approvals; timing and availability of external financing on acceptable terms; conclusions of economic evaluations; changes in project parameters as plans continue to be refined; future prices of commodities; failure of plant, equipment or processes to operate as anticipated; risk of unforeseen environmental liabilities for which the Corporation is not indemnified; delays in the completion of development or construction activities, as well as those factors discussed in or referred to under the heading "Risk Factors" in the Company's Prospectus dated April 10, 2007 available at www.sedar.com which could cause actual results to differ materially from those anticipated and described in the forward-looking statements. Such information and statements involve known and unknown risks, uncertainties and other factors that may cause actual results or events to differ materially from those anticipated in such forward-looking information or statements.

The Company cautions that the foregoing list of assumptions, risks and uncertainties is not exhaustive. The forward-looking information and statements contained in this news release speak only as of the date of this news release, and the Company assumes no obligation to publicly update or revise them to reflect new events or circumstances, except as may be required pursuant to applicable securities laws.