Calgary-based Alter NRG Corp. has signed a contract to deliver four of its Marc 3 Westinghouse Plasma torch systems to a Chinese company for approximately $1 million US.

The buyer, Beijing Huanyu Guanchuan Plasma Technology Ltd. (GuanChuan) will use the torches for their industrial furnace applications in the steel and iron industry.

The initial order is part of a larger master agreement valued at approximately USD$12 million with additional orders expected in 2013. The torches are expected to begin assembly immediately with final delivery expected in the first quarter of 2013.

The application is focused on the retrofit of ferrous alloy furnaces to utilize plasma power as opposed to the conventional fossil fuels and electrodes currently used for heating.  By using plasma, the new furnace system can help improve economic efficiencies and environmental emissions of steel manufacturing in China.

The plasma torch market is a promising opportunity for our Company as customers look to reduce their cost structure and carbon footprint,” said Walter Howard, CEO of Alter NRG

“We have been working with this specific customer over the past 3 years and believe that this order is the first of multiple orders penetrating this large segment.