Calgary-based Alter NRG Corp., which has plasma gasification technology that can turn biomass and coal into syngas, is also going after the energy-from-waste market. The company announced today that it has signed an MOU with Dufferin County in Ontario, which includes Orangeville, to build a 2-megawatt power facility that will convert 75 tonnes of municipal solid waste each day into electricity. Construction on the $32 million facility is expected to start in late 2010 and full operation will commence in late 2012, if all goes as planned. Alter NRG said Ontario is an ideal market because incentives exist for the power that comes from clean-energy facilities and regulations have been streamlined to speed up development and construction of projects.

It will be interesting to see how Alter NRG’s technology and approach compares with that of Plasco Energy, which is operating a pilot waste-to-energy facility in Ottawa and has had more than its share of problems over the past couple of years. Alter NRG, I should point out, is the company that purchased geoexchange development company Clean Energy Developments two weeks ago.

Plasma gasification company Alter NRG Corp. of Calgary has acquired Mississauga-based Clean Energy Developments Corp. (CED) for $18.4 million. It’s an odd deal, when you consider Alter NRG’s main business is to build systems that gasify coal and biomass to produce a number of outputs, including ethanol, syngas and electricity. Clean Energy, on the other hand, is a geoexchange project developer that got its start working with residential and commercial builders.

But Alter NRG decided it was a nice opportunity to diversify its business, considering the plasma gasification market still requires some time to mature. Company president and CEO Mark Montemurro said Alter NRG has the balance sheet and executive team that will help CED or “CleanEnergy” grow its business, which today sits at $6 million in revenues. “From a cash position, the acquisition provides for more stable and near-term revenue and cashflow from geoexchange installations which will be enhanced by the larger but less predictable plasma gasification equipment sales,” the company said.

I wrote about CleanEnergy a few years ago, when the company was just getting started. Back then, its primary focus was to work with homebuilders that wanted to include geoexchange systems as an option for new homebuyers. One of its first projects was in 2006 with Ontario-based Marshall Homes, which offered geothermal and solar thermal as an option in one of its subdivisions. These days, CleanEnergy is busy installing geoexchange systems for hotels, schools, commercial office buildings, and high-end homes. It still works with builders, but will also work directly with large customers.

Alter NRG knew it had to come up with some way of generating cash flow. Selling gasification systems is a risky business and has long sales cycles, while selling geoexchange systems can take place in a rapidly maturing market that is currently supported with generous government subsidies. Sales cycles are shorter, allowing for cash flow. So while it might seem like an odd fit for NRG, it could turn out to be a wise acquisition.