Alter nrg presentation to springtec nov 2010

A LEADING PROVIDER OF CLEAN ENERGY SOLUTIONS

Confidential

November 4, 2011

PRESENTATION TO SPRINGTEC

CONFIDENTIAL

• Corporate Introduction

• Advantages of Plasma Gasification

• Key Markets

• Commercial Facilities

• Technology

OUTLINE

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ABOUT US

CONFIDENTIAL

Alter NRG is a publicly traded (TSX: NRG; OTCQX; ANRGF) Alternative Energy company providing clean energy solutions

Who We Are

To commercialize growth technologies through developing environmentally sustainable and economically viable alternative energy projects

Our Vision

4

Get To Know Us

• Formed in 2006

• Headquartered in Calgary

• IPO in April 2007 at $2.25 / share

– Approximately $7.4 million of working capital (no debt) June 30, 2011

• Shares outstanding:

– 61.8 million basic

ALTER NRG CORP

CONFIDENTIAL

WESTINGHOUSE PLASMA CORPORATION

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• Wholly owned by

• Previously a subsidiary of Westinghouse Electric

• 30 years of plasma torch and plasma gasification experience

• Strategic alliances with industry leading companies and engineering companies focused on renewable energy

• Technology is used in commercial operations – not R&D

CONFIDENTIAL

• Plasma is highly ionized or electrically charged gas.

• An example in nature is lightning - capable of producing temperatures exceeding 7,000°C

• An ionized gas is one where the atoms of the gas have lost one or more electrons and has become electrically charged

Our plasma torch systems

create the intense heat inside

our plasma gasifier

WHAT IS PLASMA?

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CONFIDENTIAL

WHAT IS PLASMA GASIFICATION?

ADVANTAGES OF

PLASMA GASIFICAITON

CONFIDENTIAL

FEEDSTOCK FLEXIBILITY

• MSW• RDF/SRF• Medical Waste• Garbage dredged from river• Paints/solvents• Petrochemical waste - oil sludge• Sewage waste• Auto Shredder Residue • Tires• E-waste• Biomass including wood chips, rice husks, bagasse, etc

Alter NRG’s plasma gasification technology can:

• Process heterogeneous feedstock with minimal feed preparation

• Process high moisture and high inert content waste

• Blend solids, liquids and slurries

• Reduce dependence on one feedstock, optimize revenue based on available feedstocks

Alter NRG’s customers are currently processing or in the planning stages of processing the following feedstocks:

• Construction and Demolition waste• Petcoke flyash• Spent ammunition• Animal waste• Meat processing plant waste• Hazardous waste• Cuttings from drilling activity• Waste mined from landfill• Waste coal or coal dust• Pharmaceutical waste• Forestry Industry waste (black liquor, paper sludge)

• PCB contaminated soil 9

CONFIDENTIAL

VAST OUTPUTS

Alter NRG’s plasma gasification technology produces a tar free, particulate free

syngas – something most non-plasma gasification technologies cannot do

Syngas, produced through plasma gasification, can be converted into:• Power

• Steam cycle• Combined cycle• Reciprocating engines• Fuel cells

• Hydrogen• Ethanol• Propanol• Diesel/Naptha• Methanol• Steam/Heat• Methane

CONFIDENTIAL

MASS BALANCEPROCESS FLOW INPUTS AND OUTPUTS

CONFIDENTIAL

ALTER NRG PLASMA GASIFICATION HAS UNIQUE ADVANTAGES

• Minimal feedstock preparation

• Little shredding or crushing

• Little segregation or sorting

• Handles a wide range of feed compositions

• High moisture content

• High inert content

• Blend MSW, RDF, tires, industrial waste, C&D waste, ASR, liquidsand slurries

• Reduce dependence on one feedstock, optimize revenue based on available feedstocks

• High Reliability

• Operates in rugged industrial applications

• Over 500,000 hours and 20 years of industrial use on the plasma torches

• Low Emissions and Waste Material

• Syngas, after cleanup, burns clean like natural gas

• Vitrified Slag is inert/non-leaching and does not contaminate soil or drinking water

• Low Greenhouse Gas Footprint

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Alter NRG Vitrified, Inert Slag

Westinghouse Plasma Torch

KEY MARKETS

CONFIDENTIAL

ENERGY RECOVERY FROM WASTE

Converting Waste into Clean Energy – Power and Steam – While Reducing Greenhouse Gas Emissions and the Need for Landfills

COMPETITIVE ADVANTAGE

“Utashinai and Mihama Mikata

(Westinghouse technology) are the

only plasma gasification plants

processing MSW in the world on a

commercial basis at this time”

Juniper Consulting

“WTE helps turn a waste

management problem into an energy

generating solution”

U.S. Environmental

Protection Agency

=

1 TONNE HOUSEHOLD WASTE 1 to 1.3 MWh POWER

14• Twenty year accumulated GHG loading for four power generation options.

• Results compared on a basis of 1,000,000 MWh.

Source: SCIENTIFIC

CERTIFICATION SYSTEMS, INC.

ENVIRONMENTAL ADVANTAGE

1 TONNE INDUSTRIAL WASTE 3 MWh POWER

CONFIDENTIAL

REFUELING A POWER PLANT

• The syngas is fired into an existing boiler, with minimal amount of modification to the existing infrastructure

• Benefits:

• Materially reduce the plant’s carbon footprint

• Improve plant economics by adding a feedstock revenue stream

• Reduce capital by leveraging existing infrastructure

Existing Configuration Co-Fire Configuration

BoilerCoalGas

Fuel Oil

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Steam

MSWBiomassCoal Syngas

Modified

BoilerSteam

CONFIDENTIAL

GENERATING CLEAN SYNGAS FOR THE PRODUCTION OF

CELLULOSIC ETHANOL

• Coskata, a leader in the development of cellulosic ethanol technology, is operating its commercial demonstration plant next to the Westinghouse Plasma Pilot Plant in Pennsylvania

• The Westinghouse Plasma gasification technology is generating clean syngas which Coskata is converting into cellulosic ethanol

• MSW, sewage sludge, biomass and tires have been converted into clean ethanol

• Coskata’s first commercial facility is under development in Southeastern U.S.

TECHNOLOGY

CONFIDENTIAL

PRODUCT PORTFOLIO - CORE GASIFIER MODELS

Scope of Supply

• Plasma gasification reactor

• Plasma torch systems

• Slag solidification system

• Initial syngas cooling

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Engineering Services

• Feasibility Study

• Design Basis Memorandum (DBM)

• Process Design Package (PDP)

Standard Gasifier Platforms

P-5

• 5,000 Nm3

• 30 to 100 tpd Waste

• ~5MW

W-15

• 15,000 Nm3


• ~15MW

G-65

• 65,000 Nm3


• ~50MW

CONFIDENTIAL

Note: In accordance with Environment Agency of Japan, all data converted is 12% Oxygen, 101kPa & 273KData is summarized from available data points covering the period of 2003-2007

Operational Performance Criteria – Japan Facilities

LimitLimitOperational DataLimitParameter (units)

< 560<2 - 2120Sulphur Dioxide (ppmv)

69 - 8415079-130150Nitrogen Oxides (ppmv)

86 – 931006 - 31200Hydrogen Chloride (mg/m3)

0.00004 – 0.00260.050.0020 - 0.00940.01Total Dioxins (ng-TEQ/m3)

<16 - 1720<1040Ash (mg/m3)

Mihama-MikataUtashinai

A 2008 Golder Associates Report concluded that the Utashinai and

Mihama-Mikata facilities are capable of operating within their facility-

specific performance criteria.

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JAPANESE AIR EMISSIONS PERFORMANCE

CONFIDENTIAL

Slag from the Mihama-Mikata facility has been put through a number of leachate tests including JLT-46, NEN-7341 and TCLP analysis. These tests were conducted by two independent laboratories Shimadzu Techno-Research Inc. and ALS Laboratory Group. The results show that the Mihama-Mikata slag components are below the test detection limits and the slag is considered non-leaching. Below is a chart showing some of the results from the JLT-46 tests:

0.01<0.0010.001mg/LSelenium

0.005<0.00010.0001mg/LMercury

Notes: mg/L = parts per million (PPM)

JLT-46 performed by Shimadzu Techno Research, Inc., Kyoto Japan on Mihama-Mikata slag samples received from Kamokon

0.01<0.0010.001mg/LLead

0.05<0.0050.005mg/LChromium VI

0.01<0.0010.001mg/LCadmium

0.01<0.0010.001mg/LArsenic

JLT-46 LimitAverage Measured

Value of Slag

Method

Detection Limit

UnitHeavy Metal

MIHAMA-MIKATA SLAG JLT-46 TEST RESULTS

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VITRIFIED SLAG FROM WESTINGHOUSE PLASMA GASIFIER

CONFIDENTIAL

EXAMPLE OF HEAT AND MATERIAL BALANCE

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CONFIDENTIAL

Technical Foundation Third Party Engineering

• 9 feedstock options with a total of 36+ different simulations

• Air blown

• Oxygen blown

• G-65

• W-15

• P-5

• Capital costs and process flow determined from Design Basis Memorandums (+30% / -30%) generated by:

• AMEC

• Technip

• Uhde

Aspects Integrated into the

Economic Model

Market Specific Variables

Op Cost Variables

• 40% sustaining capital and 1% per year maintenance capital. Total of ~3.5% maintenance capital per year

• Market rates applied to all other consumables that are determined through DBM’s

Result

Determines the amount of syngas generated by the given feedstock and selects the appropriate gasifier island configuration

Feedstocks & Syngas Balance of Plant Design & Capital

Result

Credible third party plant design and capital costing

4 Core Plant Configurations• Syngas• Steam Cycle• Combined Cycle • Reciprocating Engines

• Each simulation is run using our proprietary VMG simulation software which has been correlated to over 110 pilot plant tests

Revenue Variables

Result

Grounded revenue assumptions based on market rates applied to third party derived variables (e.g. net power)

• Power Prices and tipping fees are adjusted based on the geographic market rates

• All other revenue streams reflect market prices that are updated quarterly

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ALTER NRG’S PROPRIETARY ECONOMIC MODELING PLATFORM

CONFIDENTIAL

SCOPING MODEL - EXAMPLE

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CONFIDENTIAL

COMPANY COMPANY CREDENTIAL RESULTS FROM THE REVIEW OF ALTER NRG

Juniper Consultancy is recognized as one of the leading independent analysts of emerging technologies in the waste management field

Juniper conducted a thorough review of the Westinghouse Plasma Gasification technology and the technology in application at the Mihama-Mikata and Utashinai WTE facilities. Juniper recognizes these facilities as “the only commercial plasma gasification facilities in the world processing MSW.” Juniper acknowledges the Alter NRG/Westinghouse Plasma Gasification technology as more proven than direct competitors and views Alter NRG as becoming a world leader in the design and supply of plasma-based systems.

ENSR, a division of AECOM, is a global provider of environmental and energy development services

ENSR – AECOM completed an engineer’s review that verifies Alter NRG’s assumptions of emissions from a 750 tpd MSW Plasma Gasification Combined Cycle WTE facility will be below emission limits for North America. The report confirms that processing waste through plasma gasification results in “emission levels substantially below mass burn processes.”

AMEC provides scientific, environmental, engineering and project management support in more than 30 countries

AMEC/BDR completed Design Basis Memorandums that included complete process flow diagrams and CAPEX estimates for three different facility configurations: combined cycle, steam cycle and syngas.

Golder Associates provides civil/geotechnical and environmental consulting services worldwide

Golder reviewed emissions data from Utashinai and Mihama-Mikata and confirmed that the existing plants operate below their regulated emissions limits in Japan, as well as below North American Standards

R.W. Beck is a group of technically based business consultants serving public and private infrastructure organizations worldwide

RW Beck reviewed Alter NRG’s plasma gasification technology for power plant retrofit and MSW applications and identified no major technical challenges and opined that “the plasma technology appears to be a sound method of gasifying organic feedstocks and producing fuel gas compatible with boiler combustion” and “the review did not identify major design issues.”

Shimadzu Techno Research is an analytical research service provider in the health, environment and product and material testing markets

Shimadzu Techno Research tested slag from the Mihama Mikata plasma gasification facility in Japan. The results of this study showed that this vitrified slag composition is considered inert and does not contaminate soil or drinking water.

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THIRD PARTY VERIFICATION OF ALTER NRG GASIFIER

COMMERCIAL

FACILITIES

CONFIDENTIAL

2010

BIOMASS-TO-

ENERGY

FACILITY

Wuhan, China -under construction

WESTINGHOUSE PLASMA TECHNOLOGY MILESTONES

1989

INDUSTRY–LEADING

TECHNOLOGY

Plasma technology by others such as Alcan –over 500,000 hours of

industrial use

2002

WORLD’S 1ST

COMMERCIAL SCALE

PLASMA GASIFIER

Mihama Mikata, Japan -operational in 2002

2003

WORLD’S LARGEST

PLASMA GASIFIER FOR

MUNICIPAL WASTE

Utashinai, Japan -operational in 2003

2008

WORLD’S

LARGEST

PLASMA

HAZARDOUS

WASTE

FACILITY

Pune, India -commissioned in early 2009

2009

SECOND

GENERATION

ETHANOL FACILITY

Coskata Lighthouse, U.S. - commissioned in Sept. 2009

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1987

PLASMA FIRED CUPOLA

APPLICATION

General Motors; Defiance, Ohio - commissioned in 1987

1995

INCINERATOR

ASH

VITRIFICATION

Kinuura, Japan -commissioned in 1995

1999

PLASMA

GASIFICATION OF

MUNICIPAL SOLID

WASTE (MSW)

Hitachi Metals; Yoshi, Japan -commissioned in 1999

2010

HAZARDOUS WASTE

FACILITY

Nagpur, India –commissioned Q4, 2010

Over 20 years of development and deployment history

2010

WASTE-TO-

ENERGY

FACILITY

Shanghai, China - under construction

CONFIDENTIAL

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COMMERCIAL DEMONSTRATION FACILITY

• Up to 48 tpd pilot facility in Madison, Pennsylvania, USA

• Completed over 100 pilot tests to provide baseline information

• State of the art, real-time gas composition monitoring

• Predictive modeling capability through VMG simulation software, including balance of plant

• Capability to test almost any feedstock

• Wide range of feedstocks tested, including:

– Coal

– Excavated Landfill Material (PCB disposal)

– Waste (municipal solid, refuse derived fuel, hazardous waste, construction and demolition waste)

– Tires

– Auto Shredder Residue

– Heavy Oil

– Waste Water Sludge

– Bagasse

– Wood

– Ash

CONFIDENTIAL

ENERGY FROM WASTE IN JAPAN

Mihama-Mikata

• Plasma gasification of 20 tpd of MSW and 4 tpd of waste water sludge

• Syngas is combusted and the resulting heat is used to dry sewage sludge prior to gasification

• 100% of slag is used by local concrete company

Mihama-Mikata Energy from Waste Facility

Eco-Valley Energy from Waste Facility

Eco-Valley

• Eco-Valley located in Utashinai, Hokkaido was constructed in 2002 and has been fully operational since 2003

• The Eco-Valley facility can process up to 220 tpd of MSW and auto shredder residue and the facility’s net electricity output is delivered to the grid

• Two operating gasification islands with four torches each

• Mr. Shinichi Osada, who helped design the Japanese facilities and who was the General Manager for Eco-Valley before he retired, is consulting to Alter NRG

• Mr. Osada’s experience is incorporated into Alter NRG’s gasifier design

CONFIDENTIAL

ENERGY FROM HAZARDOUS WASTE

• SMS Envocare processes hazardous waste at two facilities in India using the Westinghouse Plasma gasification technology to generate electricity

• Each facility processes 72 tonnes per day of hazardous waste

Pune Facility

• The hazardous waste comes from over 40 industries, including:

• Agro• Artificial Crystal • Automobiles• Battery• Bearing• Bio Medical • Electrical Equipments• Engineering & Machinery• Electroplating• Foundry• Food Processing• Forging• Heat Treatment• Iron & Steel

• Leather/ Tannery• Moulding• Paints• Paper & Printing• Petrochemical• Pharmaceuticals• Plastic• Polymer• Power Generation• Refineries• Rubber• Textile• Wind Mill

APPENDIX

CONFIDENTIAL

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WESTINGHOUSE INDUSTRIAL PLASMA TORCH

CONFIDENTIAL

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COMBINED CYCLE GAS TURBINE FACILITY – 900 TPD

CONFIDENTIAL

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COMBINED CYCLE GAS TURBINE FACILITY

CONFIDENTIAL

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GASIFICATION REACTOR DETAIL

CONFIDENTIAL

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GASIFICATION REACTOR DETAIL - CONTINUED

215, 4000 – 4th Street SE Calgary, Alberta T2G 2W3 Phone: (403) 806-3875 Fax: (403) 806-3721

Email: [email protected] www.alternrg.comTSX: NRG OTCQX:ANRGF

Alter nrg presentation to springtec nov 2010

Engineering

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