JUNE 2008

Caskata and Alter NRG create demonstration project at Pennsylvania waste facility
40,000 gallons of cellulosic ethanol expected per year

Alter NRG Corp. (Alter NRG), the owner of Westinghouse Plasma Corp. (WPC), announced that the existing WPC plasma gasification pilot facility has been chosen as the site for a cellulosic ethanol commercial demonstration project using Coskata Inc.’s (Coskata) proprietary synthesis gas (syngas) to ethanol conversion technology.

Coskata, a developer of next generation biofuels, is expected to begin construction in 2008 on a 40,000 gallon-per-year cellulosic ethanol plant located at the WPC gasification facility in Madison, Pennsylvania. The commercial demonstration facility costs, which are expected to be $25 million, will be borne by Coskata. Alter NRG will convert biomass and waste material in its existing gasification reactor to provide syngas, a key component of Coskata’s ethanol conversion process. This commercial demonstration will increase the utilization rate of the WPC gasification facility and is anticipated to provide approximately $2.5 million in revenue to the Company during 2009.

On January 13, 2008 General Motors and Coskata announced a partnership which, they believe, “affordably and efficiently makes ethanol from practically any renewable source, including garbage, old tires and plant waste. According to Argonne National Laboratory, which analyzed Coskata’s process, for every unit of energy used, it generated up to 7.7 times the amount of energy, and it reduces CO2 emissions by up to 84 percent compared with a well-to-wheel analysis of gasoline.”

The plant is expected to deliver ethanol in early 2009, and Coskata partner General Motors will use the next generation ethanol, produced at the demonstration facility, at their Milford Proving Grounds to run in their E85 capable fleet of vehicles.

Coskata leverages proprietary microorganisms and efficient bioreactor designs in a unique three-step conversion process that can turn virtually any carbon-based feedstock into ethanol. Coskata’s biological fermentation technology is ethanol-specific and enzyme independent, contributing to high energy conversion rates and ethanol yields. Additionally, the process requires no additional chemicals or pre-treatments, serving to streamline operational costs.