Alter NRG successfully completes testing of waste-to-ethanol process at Westinghouse Plasma Demonstration Center in Madison, Pennsylvania; Alter NRG gasifies simulated MSW, sewage sludge, tires, Coskata converts syngas into ethanol

Rachel Carter

CALGARY, Alberta , October 18, 2011 (press release) – Alter NRG Corp. ("Alter NRG" or the "Company") announces that it has successfully completed testing of waste to ethanol at the Westinghouse Plasma Demonstration Center in Madison, Pennsylvania. Alter NRG believes that waste to ethanol and other biofuels (diesel, gasoline, etc.) is a growth market and is working with several biofuel producers to jointly model waste to biofuel solutions. The ability to convert waste to biofuels has several market changing characteristics:

Versus biomass to liquids plants, waste to biofuels plants benefit from getting paid to safely dispose of waste instead of paying to procure biomass. This operating cost difference can be as much as one dollar per gallon of biofuel.

Waste to biofuels plants do not consume food based feedstocks, a major criticism of existing corn based ethanol plants.

Waste to biofuels plants can be located close to markets that consume liquid fuels which reduces the amount of transportation required for the fuels.

Producing liquid fuels from waste results in fewer emissions than when waste is incinerated.

Flex Ethanol, a partnership among Australian companies GM Holden, Caltex and Phoenix Energy, recently completed testing with Alter NRG and Coskata Inc. ("Coskata"). Waste feedstocks (including simulated municipal solid waste, sewage sludge and tires) were successfully gasified by Alter NRG into clean syngas and that syngas was converted into ethanol by Coskata. This test represented an important step toward a planned waste to ethanol project in Australia which, if it goes to construction, would be expected to utilize two of Alter NRG's large scale Westinghouse Plasma gasifiers.

"Conducting a test at Alter NRG's demonstration plant was a critical component of Flex Ethanol's project development plan", stated Peter Dyson from Phoenix Energy. "The successful test results have given us the confidence to continue the development of our project to be located near Melbourne - a project that will convert up to 2000 tonnes per day of waste to ethanol"

Alter NRG is working with customers and biofuel suppliers on several waste to biofuel opportunities which can produce ethanol in addition to various other biofuels. Coskata constructed Project Lighthouse, its semi-commercial scale facility, adjacent to the Company's Westinghouse Plasma Demonstration Center in 2009. For two years now, Alter NRG has been converting biomass feedstock and recently waste into clean syngas which Coskata has successfully converted into fuel-grade ethanol.

"The Westinghouse Plasma technology has shown that it can handle a wide variety of biomass and waste material, and consistently deliver synthesis gas that is of the quality and specification that Coskata needs for the production of cellulosic biofuels," said Bill Roe, Coskata's CEO, "We look forward to working together with Alter NRG on commercial opportunities to deliver this industry leading waste to fuel solution."

Kevin Bolin, Executive Chairman of Alter NRG states that "biofuels are an important part of the energy landscape and will be an increasing focus of Alter NRG's future strategy. Converting waste into biofuels solves two major problems; i) avoiding landfills which create problems for future generations and ii) reducing the dependence on depleting oil supplies. Plasma gasification offers the scope for increased efficiency in releasing the embedded chemical energy within residual wastes and hence competitive advantages over conventional solutions like incineration. As the industry leading plasma gasification company, we are well positioned to play in this space."

The Westinghouse Plasma Demonstration Center was upgraded in 2009 to have the capability to provide clean syngas for its customers and potential customers. The Plasma Center has tested multiple feedstocks including household, commercial, industrial waste as well as many types of biomass. Mr. Bolin further states: "The Plasma Center provides us with a strong competitive advantage as our customers, such as Flex Ethanol, are able to optimize design parameters, simulate commercial conditions, and assess viability of certain feedstocks. All told, this enhances Alter NRG's market access." Since 2009, it has successfully completed over 50 tests for its customers.

ABOUT ALTER NRG

Alter NRG is pursuing alternative energy solutions to meet the growing demand for environmentally responsible and economically viable energy in world markets. Alter NRG's primary objective is to further commercialize the Westinghouse Plasma Gasification Technology, through its wholly owned subsidiary, to provide renewable and clean energy solutions from a wide variety of feedstocks, and provide a wide variety of energy outputs - including liquid fuels like ethanol and diesel, electrical power, and syngas.

The Toronto Stock Exchange does not accept responsibility for the adequacy or accuracy of this release.

This news release does not constitute an offer to sell Alter NRG securities or the solicitation of an offer to buy Alter NRG securities, nor is there to be any sale of securities in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of such jurisdiction.

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