- Agreement extended to 2028 -

OAK BROOK, IL, Dec. 6, 2011 /CNW/ - 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 for its Portside Energy facility.

Primary Energy built, owns, and operates the highly efficient 63 MW combined heat and power (CHP) facility that supplies thermal and electrical energy required by its host.

The new agreement takes effect after the expiry of the existing contract in 2013 and continues through August 31, 2028. Terms of the agreement require Primary Energy to further improve the Portside facility's overall efficiency through the implementation of a boiler turndown project and the installation of a condensing economizer, both of which are expected to be completed in 2012 at a total cost between US$6.5 and US$8.5 million.

The overall financial terms of the agreement are in line with Primary Energy's expectations and consistent with its stated objectives for contract renewals.

"This long-term renewal further strengthens our relationship with our host and again demonstrates that we can extend our project contracts that provide improved value to our customers while delivering on our commitments to our shareholders," said John Prunkl, President and Chief Executive Officer of Primary Energy Recycling. "This agreement marks the second long-term extension that we have signed in 2011 with a core customer, illustrating the cost effectiveness of our energy recycling and highly efficient combined heat and power solutions, which provides our customers clean, reliable energy with the added benefit of reducing carbon dioxide emissions while saving money."

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 word "expect" 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 cost and schedule overruns related to the Portside modifications, including statements regarding modifications to the Portside facility, 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.