CALGARY, March 18 /CNW/ - (TSX - NRG; OTCQX - ANRGF) - Alter NRG Corp., ("Alter NRG", the "Corporation", "us" or "we") is pleased to report on its corporate activities and financial results for the year ended December 31, 2008. The following are the annual highlights for 2008 fiscal year and the period up to March 16, 2009:

2008 HIGHLIGHTS 

TECHNOLOGY SALES

Expanded our customer base and revenue potential:
-   Repositioned Alter NRG's strategic focus to technology sales with
large waste and energy companies able to advance plasma gasification
projects.
-   Continued engineering on the NRG Energy, Inc. ("NRG Energy") Somerset
Massachusetts coal power plant retrofit which is the first commercial
scale plasma gasification project to obtain regulatory approval in
North America. NRG Energy, a Fortune 500 company, is also advancing
other waste-to-energy opportunities in the United States ("US").
-   Announced strategic alliance with Air Products for development of
renewable energy facilities in North America and Europe. Air Products
is a recognized global leader in industrial gasses and a Fortune 500
company.
-   Announced a sale to KiPlasma Industries and Trade Inc. ("KiPlasama").
Alter NRG's plasma torch system is expected to be used in their
144-ton per day waste facility in Turkey, scheduled for construction
in 2010.
-   Advanced 12 projects into the engineering stage with ongoing
engineering sales being advanced by Alter NRG. These opportunities
are located worldwide with nine in the United States, one in Europe
and two in Southeast Asia. A typical plasma gasification equipment
sale would be approximately $10 to $50 million upon successful
development.

FINANCIAL

Increased our financial resources and shareholder visibility:
-   Closed a bought deal financing of $46 million, including the
over-allotment option, at a price of $4.40 per share.
-   Graduated from the TSX Venture Exchange to the TSX Exchange, Canada's
leading exchange to improve visibility to our shareholders.
-   Secured a listing on the US-based OTCQX, which will provide Alter NRG
with a credible and accessible gateway to US-based investors.


CUSTOMER PROJECTS UNDER CONSTRUCTION

Commercial projects using our plasma gasification technology:
-   Commenced construction of Coskata Inc.'s cellulosic ethanol
commercial demonstration project located at our demonstration
facility in Pennsylvania. Coskata, who is partnered with General
Motors, was No. 1 in Biofuels Digest 2008 rankings of the "50 Hottest
Companies in Bioenergy".
-   Advanced construction and commissioning of the two hazardous
waste-to-energy facilities in India being developed by SMS
Infrastructures Limited, central India's largest civil engineering
and infrastructure development company.

ALTER NRG PROJECT DEVELOPMENT

Advancing internal projects and creating value:
-   Announced Canada's first coal-to-liquids project, which also involves
CO(2) capture and issued public filings including the Fox Creek
Public Disclosure Document and Terms of Reference. The project will
gasify Alter NRG's coal reserve, which contains enough coal to
produce 40,000 barrels per day of diesel and naphtha for 50 years.
-   Sold our Hinton coal lease to a junior TSX Venture mining company for
$1 million cash and a 5% net profits royalty on future coal sales.
This represents a 466% cash return on investment in less than two
years, with significant potential for net profits interest upon
successful development of the mine.

For more information on the Corporation's activities please visit www.alternrg.ca or www.sedar.com to view Alter NRG's 2008 Annual Report.

PRESIDENT'S MESSAGE

We all faced major challenges in 2008 as the unprecedented economic downturn spread globally - creating an uncertain capital market. However, opportunities for Alter NRG exist as society continues to look for renewable energy and sustainable development.

We offer a smaller-scale solution, that is commercially proven, a leading brand name through our ownership of Westinghouse Plasma Corporation and sustainable development opportunities eligible for numerous government financing incentives. We continue to forge ahead optimistically.

The worldwide demand for clean and renewable energy continues to grow. In North America this is very clear in the energy and environmental policies of the new US administration. Europe has already developed favorable renewable energy programs in which plasma gasification is already pre-qualified. China and India are also looking for cleaner forms of energy to fuel their continued growth.

If we can borrow a page from the new US administration, we see that pragmatism is being restored. It seems to show up near the middle of two extremes and is rooted in the idea that compromise isn't weakness but rather an opportunity. As a company we have maintained our long-term vision of becoming a recognized, senior energy producer but at the same time acknowledge that in these changing times a pragmatic approach of focusing on technology sales and protecting our positive capital position is a prudent strategy.

A push for a pragmatic approach to energy production is also emerging. Globally, communities, organizations and governments are looking for answers to their energy concerns and changes to clean and renewable energy production. Alter NRG is part of this change by providing clean energy and using renewable feedstocks in a sustainable way. The commercial acceptance of the technical and economic potential of our plasma gasification technology is growing within government and industry.

As we continue to build alliances, the North American, European and Asian markets all present real opportunities for Alter NRG to increase our presence and revenue growth. We are a market leader with ownership of a strong Westinghouse technology plus we have a strong technical and sales team able to build inroads and execute our strategies into these emerging markets.

Right now 2009 looks as though it will be a challenging environment to navigate. The world is changing but it also brings opportunity for a leading Westinghouse Plasma technology that provides real solutions that make economic and environmental sense. Our strategic focus is clear and we are excited about our future.

This press release should be read in conjunction with the Corporation's consolidated financial statements for the year ended December 31, 2008, the notes thereto and the associated Management's Discussion and Analysis thereon. For the complete financial statements please visit www.alternrg.ca or www.sedar.com to view Alter NRG's 2008 Annual Report.

MANAGEMENT'S DISCUSSION AND ANALYSIS EXCERPTS

Corporate overview

Alter NRG provides and pursues alternative energy solutions through gasification to meet the growing demand for clean energy in world markets. The Corporation's vision is to become a leader in the development of economically viable and environmentally sustainable gasification projects for the commercial production of energy. Alter NRG creates revenues by selling plasma gasification technology and through participation in gasification projects that fit its strategic growth plan.

Alter NRG's mission is to participate in financially accretive projects in the emerging alternative energy market, through technology sales and project interests, to maximize returns for its investors. Alter NRG endeavors to be a leader in innovative gasification related technologies applied to produce profitable and clean alternative energy solutions. The Corporation invests in the skills of its people who will provide the creativity, determination and passion to generate growth in stakeholder value. The Corporation continues to strive to be transparent and fair in its activities and work to form positive relationships with the communities in which it operates and with all of its stakeholders.

Given the current unfavourable market conditions, the Corporation is focusing its efforts on technology sales and developing a portfolio of strategic customers that have the capability to advance projects from internally generated cash flow. The focus will be to increase near term cash inflows from operational revenues and reduce capital expenditures on projects through reduced or no working interests and slowing project timelines.

The Corporation owns Westinghouse Plasma Corporation ("WPC"), which it believes is an industry leading technology and has the following broad advantages:

-   Commercially proven - the technology has been commercially applied,
for six years, in facilities in Japan for gasification of waste. The
plasma torches, which are core to the overall technology, have been
commercially used for over 20 years.

-   Environmentally responsible - the technology has the capability to
significantly reduce emissions as compared to other conventional
fossil fuel technologies.

-   Flexible Technology - the technology can handle a wide range of
feedstocks, including many types of waste (municipal, commercial,
industrial, and hazardous), biomass, coal and petroleum coke. The
flexibility to accept many feedstocks allows the technology to have
many differing uses and markets to which it can be applied.

-   Scalable Technology - The technology is ideal for projects with total
capital between $50 million and $500 million. The technology is
larger scale than most other plasma gasification technologies, and
has a longer commercial operating history.

The current economic and capital market conditions provide a challenging environment to operate. To mitigate the challenges Alter NRG is focusing on technology sales to parties that bring the capital, skill and expertise to develop energy projects. A core part of the corporate strategy is the use of strategic alliances and partnerships to commercialize the technology into different geographic regions and markets.

In 2008, plasma technology sales and service revenues are from engineering services provided for reactor design and process engineering, replacement parts for existing gasification customers and plasma gasification testing services provided at the Corporation's US testing centre pilot facility.

Revenues for the year ended December 31, 2007 include sales from the date the Corporation acquired its US subsidiary on April 17, 2007 to December 31, 2007. The year ended December 31, 2008 includes engineering and testing revenue for a full year and is higher in 2008 versus 2007, as efforts focused on engineering and testing to advance equipment sales with its existing and new customers. Equipment sales in the 2007 year consisted of a torch sale; there were no torch sales in the current year.

Direct costs of sales relate to direct materials and expenditures for products and services and reflect standard rates. Margins in 2008 are lower than 2007 as the engineering and testing services provided in 2008 are at a lower margin than the torch sale, the major revenue stream in 2007.

Alter NRG's key revenue stream going forward is expected to be from equipment sales in the form of either a plasma torch sale or the sale of a plasma gasification island. Plasma torches are one component of the plasma gasification island. The sale of the plasma torches used in a smaller scale gasification facility generates approximately $1.5 to $3.0 million in revenue. The Corporation plans to sell a full scope gasification solution - the plasma gasification island - to third party project developers. The sale of a single plasma gasification island would generate revenues of $25 to $35 million. The Corporation spent much of 2007 and 2008 expanding the product offering and doing the engineering studies, and product design enhancements to offer the expanded product offering.

These sales have a long lead-time, as engineering services are required in the preliminary planning phase and equipment is ordered after a project has received regulatory approval and any required project financing. The Corporation works with project developers worldwide in the early stages of planning and developing plasma gasification projects.

Since it purchased its US subsidiary, the Corporation has increased the number of customers by almost three times. Key customers advancing commercial projects include SMSIL, Coskata, NRG Energy, and KiPlasma and are discussed in the "Highlights". These companies have indicated they expect to order equipment in 2009 or 2010 to support their development activities. Alter NRG also has 12 engineering sales for customer projects that are in various stages of development.

Interest income relates to funds invested in short-term, interest-bearing investments with a Canadian chartered bank. Interest income increased by 136% for the year ended December 31, 2008 versus the prior year ending December 31, 2007. The increase reflects interest earned on a significantly higher average cash balance in 2008 from the proceeds of the equity issue in the fourth quarter of 2007 and the second quarter of 2008.

Other income consists of the Jacoby Energy's contribution of $79,044 for the year ended December 31, 2008 (December 31, 2007 - $368,758). The Corporation owns a 49% interest in a joint venture with Jacoby Energy in which it contributed proprietary technology on an exclusive basis for WTE projects to produce steam or electricity in North America.

The Corporation sold one of its non-core coal resource properties located in the Hinton area of Alberta for cash consideration of $1 million and a 5% royalty on any net profits earned from the property in the future. The carrying value of the property was $221,595 for a gain of $778,405 on the disposition. The consideration excluded the future 5% royalty, as the amount and potential realization of this royalty is dependent on successful mine construction and will be recognized as revenue when it is received.

The increase in general and administrative expenses reflects a full
operating year, having acquired the US subsidiary on April 17, 2007.

Employee costs increased due to the increased number of staff required to enact the Corporation's corporate growth strategy in 2008. At December 31, 2008, the team included 42 full time employees - 26 in the Calgary office and 16 in the US - as compared to a total of 26 employees at December 31, 2007. It is expected the staff count will remain at 45 people or below for 2009 as the Corporation has filled the critical roles to advance the business plan.

Professional and consulting fees are relatively consistent for the year ended December 31, 2008 versus December 31, 2007. These costs consist primarily of external recruiting fees and consulting and legal fees for business development. Office costs reflect a full year for the new head office space acquired in August 2007 and additional space acquired in the second quarter of the year to accommodate expected growth.

Development work for the NRG Energy Somerset project was suspended in late 2008 due to delays in the appeal process and economic conditions. The Corporation considered the recoverability of the amounts receivable from the customer for this project to be uncertain and expensed the receivable of $798,729, being the balance owed to the Corporation. The Corporation may recover these amounts from the customer at the point the project receives its final notice to proceed and board approval.

Business development costs reflect the Corporation's business development efforts, including costs of acquiring and developing strategic partnerships for project development efforts. Travel costs increased in the current year mainly due to increased focus on business development and networking with potential customers.

Public reporting costs reflect increased filing and registration fees incurred for the Corporation's move from the TSX Venture to the TSX and listing on the OTCQX to allow potential US investors access to Alter NRG's capital market.

Other costs include IT-related costs, advertising, promotion and banking charges and are consistent with the increase in personnel.

The large increase in the foreign exchange recovery reflects the effect of the drop of the Canadian dollar versus the US dollar over the period, primarily attributed to US amounts loaned to its US subsidiary.

Going forward, the overall general and administrative costs for 2009 are expected to be approximately $12 million reflecting the staffing at current levels for a full year and the associated costs to support activity. Should prolonged negative market conditions persist, or customer activity decline in a significant way, then general and administrative costs will be evaluated and reduced.

The increase in depreciation for the year ended December 31, 2008
reflects the completion of the US facility upgrade in the first quarter of
2008 plus depreciation on corporate assets. For the year ended December 31,
2007, the expense included only depreciation on corporate assets.

Amortization relates to the intangible assets acquired on the purchase of the US subsidiary on April 17, 2007.

Deferred compensation also relates to the acquisition of Alter NRG's US subsidiary. It was fully amortized over an eight-month period ending December 31, 2007.

Write-down of property, plant and equipment

The Corporation wrote off costs of $1,941,422, of which $391,422 relate to potential projects deemed economically unfeasible as of December 31, 2008 and $1,550,000 related to a write-down on the Bruderheim project from its carrying value to the estimated fair value as the project was suspended to conserve capital. The fair value of $9 million is the expected recoverable amount from the tangible assets based on independent assessments.

The increased loss for the year ended December 31, 2008 related primarily
to write-downs of property, plant and equipment, increases in depreciation and
amortization, general and administration costs and stock based compensation.
These were offset by a gain on sale of a resource property, an increase in
interest income and a decrease in the amortization of deferred compensation
expense. Timing on profitability is a function of sales timing, type and
profitability as described in the "Plasma technology sales and services"
section and can be affected by various operating issues as outlined further in
the Corporation's MD&A - "Business Conditions and Risks".

Credit facility

The Corporation's US subsidiary has a line of credit agreement with a major bank in the US for $500,000 US. The line of credit is due on demand and secured by the subsidiary's assets. The credit facility bears interest at a rate that is equal to the US prime rate. No amounts have been drawn on the credit facility as at December 31, 2008.

Liquidity and capital resources

The Corporation's working capital balance, which was approximately $49.4 million at December 31, 2008, an increase of $21,160,093 from the year ended December 31, 2007 ($21,092,231), provides funds for the Corporation to meet its operational and capital requirements. These funds will allow Alter NRG to focus on increasing its operational cash flows through sales revenues and prevail through the current economic downturn without relying on raising additional debt or equity financing in a volatile market.

Cash used in operations has increased as the Corporation spent funds developing potential projects and establishing its infrastructure. The increase reflects the increase in staff, related office operating expenses, costs for public filings and business development activities. These costs are offset by increased interest income. Cash flow used in operations is expected to decrease as Alter NRG secures equipment sales contracts and license revenue. The timing of these cash flows is a function of sales timing, type and profitability and can be affected by various operating issues as outlined further in the Corporation's MD&A - "Business Conditions and Risks" section.

Internally generated intangible assets consist of internal project development work on the Corporation's plasma gasification island. These costs are not currently amortized as the related projects have not reached commercial operation. These costs will be amortized when a project begins commercial construction, which management expects to be in 2009.

Resource property expenditures include costs incurred for the Fox Creek core hole program completed in the first quarter of 2008 and environmental assessment, regulatory and public disclosure costs incurred to advance the Corporation's coal reserves in Fox Creek, Alberta.

Property, plant and equipment costs relate primarily to an upgrade on the Corporation's US facility completed in the first quarter of 2008 ($1.5 million), the acquisition of the Bruderheim, Alberta site ($3.4 million), a steam turbine for the Bruderheim project ($6 million) and facility upgrades related to the Coskata Lighthouse project ($0.4 million). Additional amounts were incurred for office and computer equipment to accommodate the increase in personnel at the US facility and head office in Calgary.

The Corporation has no capital commitments other than the Coskata project whereby we will spend approximately $0.6 million to modify our pilot facility. Alter NRG expects to continue to advance Fox Creek and advance its overall product offering during 2009. The Corporation is expecting to incur costs in 2009 on the Fox Creek resource of approximately $1.5 million. The actual expenditures that will be incurred in 2009 may significantly vary from this estimate as the Corporation regularly reviews its spending in light of current market conditions, opportunities and the estimated timing and cost of development projects. In addition, new projects may arise during the year that will require capital expenditures.

During the year, the Corporation entered into an agreement with a syndicate of underwriters for a $40 million financing, which included an over-allotment for an additional $6 million exercisable within 30 days after closing. On April 3, 2008, the transaction was closed, including the over-allotment, for 10,454,545 common shares at $4.40 per common share and gross proceeds of approximately $46 million.

The authorized share capital of the Corporation consists of an unlimited number of common shares.

For the complete management's discussion and analysis please visit

www.alternrg.ca or www.sedar.com to view Alter NRG's 2008 Annual Report.

The TSX Exchange does not accept responsibility for the 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. In particular, this news release contains forward looking statements pertaining to capital expenditures, schedules and commencement of operations of existing projects and projects under development; availability of project financing; timing of sales; industry trends; factors influencing capital investments and development activities; the Corporation's reputation and market position within the industry in which it operates and the Corporation's strategy and competitive advantages.

Forward-looking statements are frequently characterized by words such as "plan", "expect", "project", "propose", "target", "intend", "believe", "should", "anticipate", "estimate" or other similar words, or statements that certain events or conditions "may" or "will" occur. Forward-looking statements are not based on historical facts but rather on the expectations of management of the Corporation regarding, among other things, the Corporation's future plans and intentions, results of operations, levels of activity, future capital and other expenditures (including the amount, nature and sources of funding thereof), competitive advantages, business prospects and opportunities.

Forward-looking statements reflect management's current beliefs and assumptions, based on information currently available to management. A number of factors could cause actual results to differ materially from the results discussed in the forward-looking statements, many of which are beyond the control of the Corporation. Among the material factors that could cause actual results to differ materially from those indicated by such forward-looking statements are:

-   that the information is of a preliminary nature and may be subject to
further adjustment

-   the completion of strategic partner's projects

-   the possible unavailability of financing at competitive rates and the
related effect on development activities

-   other business risks outlined in this MD&A, including risks
associated with the proprietary technology

-   the effect of energy price fluctuations

-   risks associated with the clean energy business

-   changes in government regulation, including changes to environmental
regulations

-   the effects of competition

-   the dependence on senior management and key personnel, and

-   fluctuations in currency exchange rates and interest rates.

The Corporation 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 Corporation 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. Additional risk factors can also be found in the Corporation's Annual Information Form field on SEDAR (www.sedar.com).

For further information: Mark Montemurro, President and Chief Executive Officer, (403) 806-3877, mmontemurro@alternrg.ca; Daniel Hay, Chief Financial Officer, (403) 806-3881, dhay@alternrg.ca