Primary Energy Signs New Long-Term Contract for its North Lake Energy Facility

-Agreement is for 30 years or more -

OAK BROOK, IL, May 3 /PRNewswire/ - Primary Energy Recycling Corporation (TSX: PRI), a clean energy company that generates revenue from capturing and recycling recoverable heat and byproduct fuels from industrial processes, today announced that it has finalized a long-term contract for energy services with ArcelorMittal USA for Primary Energy's upgraded North Lake Energy facility.

The new long-term contract remains in place until the end of the economic or functional life of North Lake, which is expected to be at least 30 years.  Terms of the agreement require ArcelorMittal to supply North Lake with steam produced from waste blast furnace gas, including steam from the $63.2 million Indiana Harbor Energy Recovery & Reuse: 504 Boiler Project, which is currently being constructed by ArcelorMittal.

The contract requires Primary Energy to expand the capacity of its North Lake facility by 20 per cent to 90 megawatts. This project upgrade, which is expected to cost $10 to $12 million, is underway with the first phase completed in March, 2011. The second phase is expected to be completed during the second or third quarter of 2012 to coincide with the expected completion of ArcelorMittal's new 504 boiler.

"This long-term renewal agreement solidifies our strong, productive relationship with ArcelorMittal, and is expected to yield financial results consistent with our expectations," said John Prunkl, President and Chief Executive Officer of Primary Energy. "We took the time necessary to get the contract right and have improved the alignment of our operational objectives, which is a key component for a successful, long-term relationship. By working together, we are helping to reduce ArcelorMittal's overall energy costs while keeping vital manufacturing jobs in Indiana. On a larger scale, energy recycling projects such as North Lake Energy make a positive impact on the environment, support North America's energy independence and serve as examples of smart, energy efficient projects that achieve multiple business, policy and environmental goals."   

About Primary Energy Recycling Corporation
Primary Energy Recycling Corporation owns a majority interest in Primary Energy Recycling Holdings LLC ("PERH"). PERH, headquartered in Oak Brook, Illinois, indirectly owns and operates four recycled energy projects and a 50 per cent interest in a pulverized coal facility (collectively, the "Projects"). The Projects have a combined electrical generating capacity of 283 megawatts and a combined steam generating capacity of 1.8M lbs/hour. PERH creates value for its customers by recycling recoverable heat and byproduct fuels from industrial and electric generation processes and converting it into reliable and economical electricity and thermal energy for resale back to its customers. For more information, please see www.primaryenergy.com.

Forward-Looking Statements
When used in this news release, the words "anticipate", "expect", "project", "believe", "estimate", "forecast" and similar expressions are intended to identify forward-looking statements. Such statements are subject to certain risks, uncertainties and assumptions pertaining, but not limited, to operating performance, regulatory parameters, weather and economic conditions and other factors discussed in the Company's public filings available on SEDAR at www.sedar.com. These forward-looking statements are made as of the date of this press release and the Company assumes no obligation to update or revise them to reflect new events or circumstances except as required by applicable securities laws.

SOURCE Primary Energy Recycling Corporation