CALGARY, Feb. 19 /CNW/ - Alter NRG Corp. ("Alter NRG" or the "Company") is pleased to announce that it has selected KBR Inc. ("KBR") to provide engineering services for the Fox Creek Coal to Liquids project ("Project"). KBR has also expressed interest in becoming an investor into the Project at a later stage of development through its Venture Business Unit. Alter NRG remains committed to advancing Canada's first Coal to Liquids ("CTL") with carbon dioxide ("CO(2)") capture Project that will provide a clean energy solution for alternative oil production.

With this announcement, Alter NRG has engaged KBR to prepare a detailed study of the capital costing, and advancement of technology selection for the Project. KBR may continue its participation with follow-on front end engineering design, performance of detailed engineering, procurement and construction, performance of operations and maintenance services and further may potentially license KBR technology for the Project.

Mark Montemurro, President and CEO of Alter NRG commented, "We are excited to be working with an industry leading engineering firm like KBR as a core service provider and potentially also as a technology provider. Having a world-class engineering firm engage its full design and operation capacity for this study illustrates the Fox Creek project's potential.

John Quinn, president of KBR's Downstream business unit, stated "The Fox Creek project is an exciting opportunity for KBR to utilize its diverse skills and help to develop a world class project. The project has many unique positive attributes such as proximity to infrastructure, access to a large, low cost coal, and CO(2) sequestration for enhanced oil recovery in the immediate area."

As disclosed in the public disclosure document on July 21, 2008, Alter NRG holds a 468 million tonne coal reserve which translates into approximately 700 million barrels of recoverable liquid fuels through gasification. Alter NRG has ownership of the coal and the ability to add value to the shareholders both through a carried interest in the project and through a future royalty on the coal reserve. This value can be created with or without a significant capital investment by Alter NRG.

Further details on the Project are outlined below and readers are directed to a copy of the Public Disclosure Document which can be found on the Alter NRG website at www.alterNRG.ca or on SEDAR at www.sedar.com, and which contains important assumptions, limitations and other information.

ABOUT THE PROJECT

The Project will involve the extraction of Alter NRG's Fox Creek coal resource and through gasification and other processes will produce diesel fuel and naphtha. Alter NRG's coal reserve contains enough coal to produce 40,000 barrels per day of liquid fuels, such as diesel, for over 50 years. The Project is located approximately 27 km northeast of the Town of Fox Creek, Alberta, approximately midway between Edmonton and Grande Prairie. Alter NRG holds the lease to four crown coal resources located to the north of Fox Creek township and has ownership of 468 million tonnes of proven plus probable coal reserves and 876 million tonnes of coal resource (both reports have been previously released on December 17, 2007 and are filed on SEDAR).

ABOUT KBR

KBR is a global engineering, construction and services company supporting the energy, petrochemicals, government services and civil infrastructure sectors. KBR Engineering is a world leading engineering company employing over 50,000 people worldwide with significant expertise in gasification and liquids processes.

The company offers a wide range of services through its Downstream, Government and Infrastructure, Services, Technology, Upstream and Ventures business segments. For more information, visit www.kbr.com.

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 be a senior energy producer by becoming the world's leading supplier of gasification technology and developing environmentally sustainable and economically viable projects. The Company's objective is to provide renewable and clean energy solutions from a wide variety of feedstocks, and provide a wide variety of energy outputs - including hydrogen, liquid fuels like diesel, ethanol, power, and syngas.

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adequacy 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: the timing and amount of estimated production; ability to finance the project, costs of production; capital expenditures; construction time lines; currency exchange rate fluctuations; environmental risks; unanticipated reclamation expenses; risk of obtaining regulatory approvals; engineering and design risk; fluctuation in commodity prices, operational challenges 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. It is important to note that at this preliminary stage, no assurance can be made that the Company will be able to raise the required funds or that KBR will actually participate in the Project.

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.