Calgary-based alternative energy solutions developer Alter NRG (TSX.T.NRG
, Stock Forum
) has signed an agreement with Air Products and Chemicals (NYSE:APD
, Stock Forum
) to provide a plasma gasification system – the second such system the company has purchased from NRG – for $21million.
The Westinghouse Plasma Gasification system is, according to the company, a “worldwide leader in creating energy from waste using plasma gasification.”
The process involves converting organic matter into synthetic gas, electricity and slag using a plasma torch to ionize gas and catalyse waste.
The first such project started by the two companies was developed in Northeast England at the Tees Valley Renewable Energy Facility. That project is set to process 950 tonnes of household waste and turn it into 50 MegaWatts of renewable electricity.
From the company news release, “Alter NRG and its wholly owned subsidiary Westinghouse Plasma Corp. will provide gasifier equipment, related control, instrumentation, and engineering services for a fixed price of approximately USD$21 million. Alter NRG expects to realize the majority of the revenue within fifteen months. As part of the agreement, Alter NRG expects to receive a down payment within 15 days and further milestone payments will be received as fabrication progresses.“
The $21 million sale is significant, as Q3 results from the company showed $11.2 million in year-to-date sales, which, in itself, was up 38% from a year earlier.
Walter Howard, Chief Executive Officer of Alter NRG said in a news release, “having an industry-leading company like Air Products commencing construction of a second facility utilizing our Model G65 gasifier solution is a significant commercial milestone. This illustrates Air Products’ confidence with and commitment to the Westinghouse Plasma Technology and is encouraging to our other customers worldwide. We look forward to supporting Air Products as they continue to expand their plasma gasification energy from waste business."
Alter NRG stock has risen 100%, from $0.34 to $0.68, since August.
FULL DISCLOSURE: Alter NRG is a Stockhouse Publishing client.