Alter NRG Corp. announced earlier this week the signing of a definitive agreement to construct a demonstration facility and also a letter of intent for licensing and development of future biomass-to-energy projects in the Chinese market. The agreement is with Wuhan Kaidi Holding Investment Co., Ltd (Kaidi) which expects to construct one facility which can process approximately 50 to 100 tons per day of varying biomass materials before the end of 2010. Alter NRG will receive approximately $1 million CDN in plasma torch orders and engineering services, access to all operational data from the facility and will establish fabrication capacity in the Chinese market through Kaidi.

Mark Montemurro, President and CEO states "This is a significant milestone for our entry into the Chinese market. Kaidi is a respected and leading company that is planning to do multiple projects using our technology in the future and the initial capital investment into the small scale facility is a critical step as the Chinese market adopts technology quickly upon successful demonstration within the Country. It has also been a strategic priority to develop fabrication capacity in the Chinese market for Customers around the world and Kaidi has world-class fabrication capability and local relationships which will help reduce costs for plasma gasification projects."

Kaidi has a stated mandate to be "Devoted to environmental protection for the benefit of humanity" and with approximately 1 billion USD of annual sales they are a leading green energy company in China. Kaidi is a publicly traded company in China with a long history of successfully working with Western Companies. The first small-scale commercial facility will take all types of biomass and waste water sludges unique to the China market and convert it into syngas using the Westinghouse Plasma Corp (a wholly owned subsidiary of Alter NRG) technology and then convert the syngas into biofuels using Kaidi proprietary conversion technology.

Mr. Chen Yilong, Chairman of Kaidi states, "We are pleased to be working with the Westinghouse plasma solution and believe it provides fuel flexibility for the more than 150 biomass projects that we plan to develop throughout China. We are looking to begin development immediately of a small scale project that can be used as a reference to aggressively build out many larger scale facilities in the near-term."

The Chinese government has aggressive renewable energy mandates and Alter NRG has been meeting with several large energy and power companies throughout the region. Currently, the Chinese government has mandated over $500 billion USD of new construction of waste and biomass energy facilities. Alter NRG is advancing other proposed projects with large scale companies in China and expects to announce further strategic initiatives in the Chinese market for municipal and hazardous waste feedstocks.

Richard Fish, Chief Operating Officer of Alter NRG states, "We are very pleased to see the past year's effort result in a definitive agreement with Wuhan Kaidi. Kaidi is a leader in China's growing biomass segment and is a premiere company in the renewable energy sector in China. This initial demonstration facility provides a platform for us to build on and will serve as the basis for a multitude of larger facilities using Westinghouse technology. We anticipate that these solutions will generate revenue of $3 to $10 million per facility. As the Chinese market is aggressively mandating cleaner technology solutions, we are confident of plasma gasification's continued growth and presence.

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