Hydro Alternative Energy, Inc. announces execution of first power purchase agreement

HYDRO ALTERNATIVE ENERGY, INC. ANNOUNCES EXECUTION OF FIRST POWER PURCHASE AGREEMENT.
Jupiter, FL, November 15th, 2010- Hydro Alternative Energy, Inc. (“HAE” or the “Company”), a renewable energy company, through its wholly owned subsidiary HAE Latin America, Inc. (“HAELA”) has executed a 20-year power purchase agreement (“PPA”) with Hydro Energy Solutions, LLC., (“HES”), a renewable energy company located within the Commonwealth of Puerto Rico, for HES to purchase 20 megawatts of clean electricity.

This project may also provide the benefits of both renewable energy and job creation to the Commonwealth of Puerto Rico, even though the PPA is with a private company, and is designed to power a private real estate development. Mr. Arturo Madero-Arboleda, President of HES, is currently in negotiations with the Puerto Rico Power Authority (“PREPA”) to sell any overages from his development to PREPA.

At the present time, Mr. Madero is also the President and the owner of Lema Developers & Associates and Lemar Investors & Developers, companies which are involved in the development of different housing and commercial projects in Puerto Rico. Some of these projects are already under development and others are in the process.

Mr. Madero is also presently involved as a principal partner in development of the Caribe Village, (Paseo Caribe). This development is planned to include a destination entertainment center, the construction of approximately 88 ocean front hotel villas, parking facilities and apartments within the luxury private condominium towers.

Luis Eduardo Bernal-Jaller, HAE’s Chairman of the Board of Directors, who was instrumental in the Company procuring this PPA, was quoted as saying “HES, led by Mr. Madero, is without any doubt the best partner that any company desirous of developing services within Puerto Rico can have. We are proud and excited to be partnering with HES and hope to soon bring our hydrokinetic power generation systems to Puerto Rico and contribute to creating a stable and steady pace of electric power development.”

HAE’s CEO, Mark Antonucci, commented that a 20 megawatt PPA is a tremendous start for our company and serves to validate our mission statement: “to deploy new technological and environmental solutions, throughout the world, to help solve the need for clean, carbon free electricity generation”.

"This power purchase agreement is the first to be completed between HES and HAE. The project will expand the power generation ability of the Commonwealth of Puerto Rico to another level and deliver clean energy to our customers," said Arturo Madero-Arboleda, President of HES. "Not only will this project help the Commonwealth of Puerto Rico meet its renewable energy standard, it will be our first hydrokinetic energy purchase from a facility constructed in the Commonwealth of Puerto Rico."
HAE’s proposed hydrokinetic power generation systems are designed to be on the ocean floor. These systems do not take up costly real estate such as other large-scale renewable energy projects. This can help hold down real estate costs while also reducing other potential difficulties. Licensing, permitting and/or other regulatory issues with their resultant costs will, however, need to be dealt with as this is a new industry.