Oak Brook, Illinois-based Primary Energy Recycling Corporation, a clean energy company that generates revenue from capturing and recycling recoverable heat and byproduct fuels from industrial processes, today announced the signing of a new 10-year tolling agreement between Cokenergy and its site host.
The new 10-year contract, which will be in place through September 30, 2023, replaces the previous contract that had been extended beyond its original term during negotiations. The new contract provides for Cokenergy to toll all the electricity and steam generated by the facility to the site host utilizing waste heat from the adjacent baseload coke battery.
As a part of this agreement, Cokenergy expects to complete an approximately $40 million facility upgrade, begun in 2010, by the end of 2015. The upgrade schedule has been substantially accelerated from the original expected completion date of 2018 in order to increase reliability and efficiency of the plant, as well as to maximize project revenues and economics for the Company's shareholders. Major upgrades include, but are not limited to, retubing all 16 boilers, updating the facility's control system and optimizing the flue gas scrubbing system.
Cokenergy, Primary Energy's largest facility, is an integrated combined heat and power facility that provides electricity, process steam, and environmental services that are integral to the site host's steel-making operations. The facility has capacity to supply up to one-fourth of the site host's total electrical requirements or more than half of its process steam needs.