Alter Nrg Corp. announces regulatory approval of Somerset Station Gasification retrofit

TSXV - NRG

CALGARY, Jan. 25 /CNW/ - Alter Nrg Corp. ("Alter Nrg" or the "Company") is pleased to announce that the Somerset Generating Station ("Facility") has received conditional approval from the Department of Environmental Protection of the Commonwealth of Massachusetts for proposed modifications using the Alter Nrg-owned Westinghouse Plasma Gasification System. The Facility is owned and operated by NRG Energy, Inc. (NYSE: NRG) which has an exclusive license to the Alter Nrg Plasma Gasification technology as described in the April 26, 2007 press release.

NRG Energy's Somerset Station currently produces 120 megawatts (MW) from coal combustion and has received conditional approval to modify the existing boiler and install a Plasma Gasification reactor system to gasify coal and biomass to create syngas which will then fuel the modified power generation equipment. The Company has an agreement with NRG Energy to provide the Plasma Gasification System to be used in the retrofit and has an option to participate, at its sole discretion, from a 10 to 25% equity interest in the project.

Plasma gasification technology offers an environmentally responsible solution for older power plants and works with numerous feedstock material including solid biomass, coal, and construction and demolition waste. Retrofitting coal fueled facilities using Alter Nrg's Plasma Gasification system is expected to reduce harmful air emissions below US environmental guidelines, with reductions of up to 60% of nitrogen oxides (NO(*)) and up to 95% of mercury and sulfur dioxide (SO(2)). Reductions in greenhouse gas emissions from retrofitted facilities are possible by combining biomass into the feedstock to displace the need for coal and further reduction may be possible with the future add-on of carbon capture and sequestration technology.

The approval for NRG's Somerset Facility is conditional upon meeting the agreed upon emissions profiles and various performance standards throughout the retrofitting process. The Department of Environmental Protection comments that "the conditional approval includes limitations on the facility's CO(2) emissions significantly more stringent than the (current) requirements."

The conditional permit is not subject to further review; however, the project itself is subject to NRG Energy management approval. If NRG Energy moves forward with this project, any Alter Nrg investment is subject to due diligence. Any decision by Alter Nrg to exercise its option to invest would be conditional upon such factors as the Company's ability to raise capital to finance its investment, as well as Management's view on the desirability of participating.

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; 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.