SOURCE: Alternate Energy Corporation

March 21, 2007 05:00 ET

Alternate Energy Corp. Produces Hydrogen Without Greenhouse Gas (CO2) Emissions

Company's Breakthrough Technology Is First to Economically Produce Carbon Free, Non Polluting Hydrogen Gas; Companies Installing AEC's Bulk Hydrogen Production Plants Will Be Qualified for "Green Credits" for Doing Their Part in the Reduction of Carbon Dioxide Emission

BURLINGTON, ON -- (MARKET WIRE) -- March 21, 2007 -- Alternate Energy Corporation (OTCBB: ARGY), the developer of an innovative technology for the production of hydrogen and certain commodity chemical products, announced today that its breakthrough process technology will produce bulk quantities of pure hydrogen without any emission of greenhouse gases (carbon dioxide) into the environment. AEC's process produces valuable commodity chemicals while producing the hydrogen, but no toxic by-products -- it is a totally "green" process.

AEC believes that its "green" technology for the production of hydrogen is the right technology at the right time. The primary methods of producing hydrogen gas today are "electrolysis" and "steam reformation of natural gas."

Electrolysis, used to produce about 5% of hydrogen today, is known to be highly energy-intensive. The cost of producing and delivering hydrogen from a central electrolysis plant is estimated at $7 to $9 per kilogram. One kilogram of hydrogen is equivalent to one gallon of gasoline. However, burning one gallon of gasoline will produce about 20 lbs. of carbon dioxide (CO2), but to produce that one kilogram of hydrogen by electrolysis will produce about 70 lbs. of CO2.

Steam reformation of natural gas, the method used today to produce about 95% of all hydrogen requirements, costs $4 to $5 per kilogram. However, this process produces carbon and if burned it would produce 11 lbs. of CO2.

Currently there is about $3 billion of hydrogen sold annually on a worldwide basis, a number that is expected to grow significantly as the new "hydrogen economy" takes hold.

Dr. Joseph Romm, Former Acting Assistant Secretary of Energy of the United States, in Testimony to the House Science Committee, stated, "A major technology breakthrough will be needed to deliver low-cost, zero-carbon hydrogen." He went on to say that "the burning of fossil fuels -- oil, gas and coal -- emits carbon dioxide (CO2) into the atmosphere where it builds up, blankets the earth and traps heat, accelerating global warming. We now have greater concentrations of CO2 in the atmosphere than at any time in the past 420,000 years, and probably anytime in the past 3 million years -- leading to rising global temperatures, more extreme weather events (including floods and droughts), sea level rise, the spread of tropical diseases, and the destruction of crucial habitats, such as coral reefs."

Blaine Froats, CEO of AEC, commented, "We can produce hydrogen gas without any emission whatsoever. Not only is it cost efficient, but because the process produces a valuable commodity by-product a profit results. The process involves a chemical reaction that does not require the input of outside energy. When the reaction is finished everything used is spent and therefore there is no waste to be disposed of."

Mr. Froats added, "As discussed in our last news release, we are moving forward in a determined way to contract our first bulk hydrogen production plant, and will announce the commitment as soon as finalized. We remain confident that our process technology will have a strong impact on certain market sectors that will readily move to our environmentally friendly process, and gain 'green credits' for the benefit of us all."

About Alternate Energy Corporation (AEC; www.cleanwatts.com)

Alternate Energy Corporation (AEC) is energizing the hydrogen economy with its on-demand hydrogen production technology that provides bulk production of hydrogen and saleable commodity chemical products. These systems have global opportunities in multiple market segments. AEC's proprietary discovery in metallurgy and process technology permits the generation of hydrogen through a "green" process at a competitive level to the fossil fuel Kwh cost of energy. AEC believes its systems can have a revolutionary impact on the energy industry. For more information go to: www.cleanwatts.com

Forward-Looking Statements:

Statements herein express management's beliefs and expectations regarding future performance and are forward looking and involve risks and uncertainties, including, but not limited to, raising working capital and securing other financing; responding to competition and rapidly changing technology; and other risks. These risks are detailed in AEC's filings with the Securities and Exchange Commission, including Forms SB-2, 10-KSB, 10-QSB and 8-K. Actual results may differ materially from such forward-looking statements.

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