Alter NRG and Wuhan Kaidi Holding Investment Co., Ltd (“Kaidi”) Alliance Agreement

In May, 2010, Alter NRG and Kaidi signed an alliance agreement to construct a demonstration facility and development of future biomass-to-energy projects in the Chinese market. Kaidi plans to develop more than 150 biomass projects throughout China.

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.

Mr. CHEN Yilong, Chairman of Kaidi

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.

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.

Mark Montemurro, President & CEO of Alter NRG