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                       SECURITIES AND EXCHANGE COMMISSION
                             Washington, D.C. 20549
                                   FORM 10-QSB

[X]      QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15 (d) OF THE SECURITIES

    EXCHANGE ACT OF 1934 FOR THE QUARTERLY PERIOD ENDING SEPTEMBER 30, 2004

[ ]      TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
         EXCHANGE ACT OF 1934

                         COMMISSION FILE NUMBER 0-28015

                       ALTERNATE ENERGY CORPORATION, INC.

             (Exact name of registrant as specified in its charter)

           Nevada                                               86-0884116
-------------------------------                             -------------------
(State or other jurisdiction of                              (I.R.S. Employer
 incorporation or organization)                             Identification No.)

                           105-3325 North Service Road
                               Burlington, Ontario
                                 Canada L7N 3G2
                    (Address of principal executive offices)
         Registrant's telephone number including area code: 905.332.3110
           SECURITIES REGISTERED PURSUANT TO SECTION 12(B) OF THE ACT:
                                      None
           SECURITIES REGISTERED PURSUANT TO SECTION 12(G) OF THE ACT:
                         Common shares, $0.001 par value

Indicate by check mark whether THE REGISTRANT (1) has filed all reports required
to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during
the preceding 12 months (or for such shorter period that THE REGISTRANT was
required to file such reports) and (2) has been subject to such filing
requirements for the past 90 days. Yes [X] No [ ]

The number of common shares without par value outstanding on September 30, 2004
was 132,664,941 Shares.


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<TABLE>
ALTERNATE ENERGY CORP.
CONDENSED BALANCE SHEET
                                                Sept 30          Sept 30            Dec 31
Unaudited                                        2004              2003              2003
---------                                    -------------     -------------     -------------
<S>                                               <C>                <C>              <C>
Assets                                                                           $         --
Bank                                              777,559            12,287           411,727
Prepaid Expenses and Sundry Assets                592,716         2,017,832         1,969,236
Technology and Capital Assets                   2,300,077         4,153,650         3,161,257
                                             -------------     -------------     -------------
                                                3,670,352         6,183,769         5,542,220
                                             =============     =============     =============

LIABILITIES
Current
Accounts payable and accrued liabilities     $     12,921      $     56,752      $    263,954
Loan Payable                                      264,497           180,362
Stock Option Liability                            848,780           209,533           846,780
                                             -------------     -------------     -------------

                                                1,126,198           266,285         1,291,096
                                             -------------     -------------     -------------

SHAREHOLDERS' EQUITY
Capital stock (Note 2)                            132,665           129,701           125,747
Additional paid in capital                     22,181,830        17,378,289        18,696,548
Deficit                                       (19,770,341)      (11,526,387)      (14,571,171)
                                             -------------     -------------     -------------

                                                2,544,154         5,981,603         4,251,124
                                             -------------     -------------     -------------

                                                3,670,352         6,247,888         5,542,220
                                             =============     =============     =============

                      See accompanying notes to the financial statements.


                                               2
</TABLE>
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<TABLE>
ALTERNATE ENERGY CORPORATION, INC.
CONDENSED STATEMENT OF OPERATIONS
(UNAUDITED)
                                     September         September        9 months ended     9 months ended
Three months ending Sept 30            2004               2003               2004               2003
                                  --------------     --------------     --------------     --------------
<S>                               <C>                <C>                <C>                <C>
Revenue                           $          --      $          --      $          --      $          --
                                  --------------     --------------     --------------     --------------

Expenses
         Management fees                     --            120,000             92,197            120,000
         Professional fees               98,279              5,635            448,043              9,660
         Consulting                   1,191,622                 --          4,200,290                  0
         Administrative                 123,849            681,880            561,535          2,667,116
                                  ==============     ==============     ==============     ==============
                                      1,413,750            807,515          5,302,065          2,796,776
                                  --------------     --------------     --------------     --------------
Net earnings (loss)                  (1,413,750)          (807,515)        (5,302,065)        (2,796,776)
                                  ==============     ==============     ==============     ==============
Basic Net loss per share                  (0.01)             -0.01              (0.04)             -0.04

Weighted basic average shares       131,829,941        113,806,877        131,000,000         79,128,850

                           See accompanying notes to the financial statements.


                                                    3
</TABLE>
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<TABLE>
ALTERNATE ENERGY CORP.
CONDENSED STATEMENT OF CASH FLOW
(Unaudited)
                                                                September        September
Three months ending Sept 30                                        2004             2003

Cash flows from (applied to)
<S>                                                            <C>                <C>

Operating

     Net earnings (loss)                                       (1,413,750)        (807,515)
   Shares issued for Services                                     512,000
                                                              ------------     ------------
                                                                 (901,750)        (807,515)
                                                              ------------     ------------
Changes in

    Accounts payable and accrued liabilities                     (420,498)         (56,593)
    Prepaid Expenses and Sundry Assets                            496,680               --
    Stock Option Liability                                          2,000               --

                                                              ------------     ------------
                                                                 (823,568)        (864,108)
                                                              ------------     ------------

Investing
    Purchase of Patents and Technology                           (329,829)      (4,090,787)

Financing

    Loan Payable                                                   99,915          209,433

    Changes in Accumulated and Other Comprehensive Income         101,012        6,632,310
                                                              ------------     ------------

                                                                  200,927        6,841,743
                                                              ------------     ------------

Net increase (decrease) in cash during the period                (952,470)       1,886,848

Cash beginning of period                                        1,730,029               --
                                                              ------------     ------------

Cash end of period                                            $   777,559      $    12,287
                                                              ------------     ------------

                    See accompanying notes to the financial statements.


                                             4
</TABLE>
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ALTERNATE ENERGY CORPORATION, INC.
NOTES TO THE CONDENSED FINANCIAL STATEMENTS
(Unaudited) September 30, 2004 [GRAPHIC OMITTED]

1. GENERAL

The unaudited condensed statements have been prepared on the same basis as the
audited financial statements and, in the opinion of management, reflect all
adjustments (consisting of normal recurring adjustments) necessary for a fair
presentation for each of the periods presented. The results of operations or
interim statements are not necessarily indicative of results to be achieved for
full fiscal years.

As contemplated by the Securities and Exchange Commission (SEC) under Rule 10-01
of Regulation S-X, the accompanying financial statements and related footnotes
have been condensed and do not contain certain information that will be included
in THE COMPANY'S annual financial statements and footnotes thereto. For further
information, refer to the financial statements and related footnotes for the
year ended December 31, 2003 included in THE COMPANY'S Annual Report on Form
10-KSB.
                                  INCOME TAXES

Income taxes for the interim periods were computed using the effective tax rate
estimated to be applicable for the full fiscal year, which is subject to ongoing
review and evaluation by management. There are no income taxes for the current
period as THE COMPANY has approximately $966,049 of net operating loss
carry-forwards, which expires between 2007 to 2009. The realization of the tax
loss carry-forward is contingent upon certain facts and circumstances, therefore
the Company may not be able to realize the net operating loss carry-forward.

                                 LOSS PER SHARE

THE COMPANY reports earnings per share in accordance with the provisions of SFAS
No. 128, EARNING PER SHARE. SFAS No 128 requires presentation of basic and
diluted earnings per share in conjunction with the disclosure of the methodology
used in computing such earnings per share. Basic earnings per share excludes
dilution and is computed by dividing income available to common shares by the
weighted average common shares outstanding during the period. Diluted earnings
per share takes into account the potential dilution that could occur if the
securities or other CONTRACTS to issue stock were exercised and converted to
common stock.

There were stock options outstanding at September 30, 2004 to purchase 4,246,385
shares of common stock, December 31, 2003 at 4,326,385

Basic weighted average shares outstanding September 30, 2004 were 132,664,941.
September 30, 2003 - 113,806,877


                                       5
<PAGE>

2. CAPITAL STOCK

There were 1,670,000 shares issued for this period. These shares were issued for
payment towards consulting services for a number of executives and professional
people.

ITEM. 2. MANAGEMENT DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS
OF OPERATIONS

GENERAL

These discussions contain forward-looking statements containing words such AS
WILL CONTINUE TO BE, WILL BE, CONTINUE TO, ANTICIPATES THAT, TO BE or CAN
IMPACT. Management cautions that forward-looking statements are subject to risks
and uncertainties that could cause The Company's actual results to differ
materially from those projected in forward-looking statements.

Alternate Energy Corp. is focused on bringing to market a reliable and
economical process for creating low-cost, on demand hydrogen for use in the
production of power. We are focusing on the production of power in both vehicles
and buildings. We are currently in the research and development stage and don't
have any revenues, but have successfully produced hydrogen that was used in the
operation of a fuel cell. We operate from two facilities: one in Burlington,
Ontario, Canada and one in Knoxville, Tennessee.

Plan of Operation

We have begun the process of refining our hydrogen production process and have
been testing different alloys in order to find the most efficient. We have also
successfully converted an internal combustion engine to work with hydrogen as
fuel. AEC does not intend to enter into the manufacturing of hydrogen-run IC
engines, but rather to eventually commission an existing manufacturer to build a
unit that meets AEC's technology design specifications. This ICE generator was
converted purely for testing and demonstration purposes.

We also made a strategic investment in Astris Energi Inc., a producer of
hydrogen fuel cells. We had previously entered into agreements with Astris and
had provided a prototype hydrogen generator to power their fuel cell golf car in
September 2003. This investment of $300,000 assures us the first POWERSTACK(TM)
MC250 Astris fuel cells `off the line', to be installed in a 2.4 kW Model E8
affordable AFC (Astris Fuel Cell) generator. Upon delivery of the AFC generator,
the unit will then be interfaced to operate using AEC's hydrogen production
technology. This completed `powerpack' will be used as a combined demonstration
unit, to jointly and independently, attract and secure commercial, utility and
government customers interested in renewable on-site energy.


                                       6
<PAGE>

The investment was in common shares of Astris stock and included 1 warrant per
common share exercisable at $0.50 per share. The common shares were bought at
$0.30 per share and will be registered for resale. Astris' shares trade on the
OTC Bulletin Board under the symbol ASRNF.

During the next 12 months we will be improving the efficiency of our on-demand
hydrogen production process and will be demonstrating both the internal
combustion unit and alkaline fuel cell unit to engine and generator producers.
We estimate that we will require additional funding of approximately $1 million
over the next 12 months. During that time we expect to be able to enter into
strategic and manufacturing relationships with a hydrogen production unit that
is ready for commercial use.

Results of Operations
During the quarter ended September 30, 2004 we had a net loss totaling
$1,413,750 as compared to $807,515 for the same quarter in 2003. For the ninths
months ended September 30, 2004 we had a net loss of $5,302,065 compared with a
net loss of $2,796,776 in the same period of 2003.

The increase quarter over quarter is due to our increased testing activities and
the opening of our Tennessee facility. We are currently spending approximately
$22,000 per month for testing and expenses at the Tennessee facility. We have
also spent approximately $61,000 in professional fees related to our patent
applications

Cash and Liquidity
Our cash decreased from $1.7 million at the beginning of the quarter to $777,559
at the end of the quarter. At this current rate we expect to have to seek to
need to raise additional funds during the 1st quarter of 2005. As noted above,
it is anticipated that we would need to raise up to $1 million over the next 12
months to fully fund operations. We expect to raise these funds through the sale
of our common stock.

Subsequent Events

On November 10, 2004 we announced that we would be canceling 30 million shares
of stock that had previously been issued in conjunction without purchase of
assets from AEC I, Inc. The original owners of those assets, consisting of
patents for technologies no longer intended for use by us, will return all
shares received from AEC I for the return of the patents and in turn, AEC I
shall return 30 million shares of our common stock that have been allocated from
the purchase price as it relates to those patents. This will have the effect of
decreasing our issued and outstanding shares by 22%.

ITEM 3. CONTROLS AND PROCEDURES.

As required by Rule 13a-15 under the Securities Exchange Act of 1934 (the
`EXCHANGE ACT'), we carried out an evaluation of the effectiveness of the design
and operation of our disclosure controls and procedures within the 90 days prior
to the filing date of this report. This evaluation was carried out under the
supervision and with the participation of our Chairman, Mr. Blaine Froats, and
Mr. Jack Wasserman, Treasurer. Based upon that evaluation, our Chairman and
Treasurer concluded that our disclosure controls and procedures are effective in


                                       7
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timely alerting management to material information relating to us required to be
included in our periodic SEC filings. There have been no significant changes in
our internal controls or in other factors that could significantly affect
internal controls subsequent to the date we carried out our evaluation.
Disclosure controls and procedures are controls and other procedures that are
designed to ensure that information required to be disclosed our reports filed
or submitted under the Exchange Act is recorded, processed, summarized and
reported, within the time periods specified in the Securities and Exchange
Commission's rules and forms. Disclosure controls and procedures include,
without limitation, controls and procedures designed to ensure that information
required to be disclosed in our reports filed under the Exchange Act is
accumulated and communicated to management, including our Chief Executive
Officer and Chief Financial Officer, to allow timely decisions regarding
required disclosure.


                                    PART III

ITEM 1. LEGAL PROCEEDINGS

On August 15, 2002 the Securities and Exchange Commission filed a civil lawsuit
against the company, its former CEO and other individuals. SEC v COI Solutions,
et al. Case No. 02-80766-CIV-Hurley. The SEC alleges in its complaint that COI
Solutions engaged in a scheme to pay illegal kickbacks to representatives of a
European fund contrived by the FBI and making false and misleading statements in
a filing on Form S-8. The SEC is seeking injunctive relief enjoining any
violations of the securities laws in the future and is also seeking civil
penalties.

ITEM 2.  UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS

         None.

ITEM 3.  DEFAULT UPON SENIOR SECURITIES

         None.

ITEM 4.  SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS

         None.


                                       8
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ITEM 5.  OTHER INFORMATION

         None.

ITEM 6.  EXHIBITS

Exhibit No.       Document Description

  31.1     Certification of the Chief Executive Officer, pursuant to Rule
           13a - 14(a) / 15d - 14(a) of the Sarbanes-Oxley Act of 2002
  31.2     Certification of the Chief Financial Officer, pursuant to Rule
           13a - 14(a) / 15d - 14(a) of the Sarbanes-Oxley Act of 2002
  32.1     Certification of the Chief Executive Officer pursuant to 18
           U.S.C. Section 1350, as adopted pursuant to Section 302 of the
           Sarbanes-Oxley Act of 2002
  32.2     Certification of the Chief Financial Officer pursuant to 18
           U.S.C. Section 1350, as adopted pursuant to Section 302 of the
           Sarbanes-Oxley Act of 2002

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, THE
REGISTRANT has duly caused this report to be signed on its behalf by the
undersigned thereto duly authorized.


DATED THIS 15TH DAY OF NOVEMBER, 2004


                             ALTERNATE ENERGY CORP.


                             BY: /S/ BLAINE FROATS
                                 -------------------------
                                 BLAINE FROATS,
                                 CHAIRMAN/CEO AND A MEMBER
                                 OF THE BOARD OF DIRECTORS


                             BY: /S/ BLAINE FROATS
                                 -------------------------
                                 BLAINE FROATS,
                                 CFO AND A MEMBER
                                 OF THE BOARD OF DIRECTORS


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