Saturday, September 11, 2010

Steady_T opines on P2O process & challenges skeptic's comments

The gasoline component of the fuel output can be separated from the diesel component by distillation in the way that a refinery would do it. The gasoline component can be diluted by blending to the level that is no longer an issue.

The third and most likely solution is to selectively condense the gasoline out of the P2O processor gas stream at production time. The company has said that it is working with IsleChem to design and test the additional hardware to do just that. Doing the separation that way is the most economical way because at that point in the process the fuel (diesel and gasoline mixture) is already in the gaseous state, so no additional energy is required. By managing the cooling rates and temperatures the gasoline condenses out before the diesel and the mixture problem is solved.

Refineries will be very happy to buy the P2O output. There are no heavier hydrocarbons in the fuel so there are no lower value end products. Also the sulfur levels are measured as trace, so no expensive sulfur removal is required like there is when they use crude to produce gasoline and diesel.

In the case of the JBI P2O process the permit will be concerned with operational parameters and requiring that the operators keep the P2O process within the limits prescribed in the permit.

The stack testing preliminary data shows that the P2O process produces no more pollutants than a well run natural gas fired heater. As such it does not require a pollution permit in the same sense that a refinery would. A refinery permit describes how many tons of VOC's are allowed or how many tons of Sulfur Dioxide can be emitted. The JBI processor doesn't produces any of those things.

The permit will set limits on the process control parameters that the operators will have to maintain to ensure that the P2O processor does not begin to emit pollutants.

Early on I speculated that the P2O processor was clean enough that it would not require an air permit. Indeed that was true. There are no pollutants that trigger a permit requirement. What I didn't understand was that a permit is required along with the stack test to define the operational characteristics that will be permitted to ensure that no pollutants are produced as well as to document that the P2O process has been reviewed and passed by the DEC.

The bottom line is that the govt. always gets it's dime.

Skeptic's quote-----
If Islechem had opined that the pryolysis oil was of similarity and quality that a refinery would likely accept then they could have explicity stated that and we could hang our hat on at least something.
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I'm real sure what you mean in this sentence. Assuming that you mean pyrolysis oil is similar to crude oil etc.

IsleChem can not speak for another company about what they would or would not buy. That would be completely inappropriate for IsleChem to make such a statement.

IsleChem can and did describe the output. What they described is considerably better than crude oil.

Re:<"If he feels that by not selling the output will maintain the positive relationship between JBI and the DEC, then I'm fine with that. Managing the companies relationships with suppliers, regulators, and customers is managements job.">

Skeptic's quote-----
Second of all, that's BS too. I know that's your assumption but I can't see any strain in the relationship with the DEC if any was sold. Why would the DEC even care?
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BS huh? If it's not management's job to manage relationships, you think it should be left to say, posters on an anonymous stock board to do that?

Doesn't matter what what you see or think about JBI's relationship with DEC. So far you have never reported even having a phone call with DEC, so how do you know what they think?

Re:<"At the worst, not selling immediately can be considered deferred income.">

Skeptic's quote----
Nice try.
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If you see something wrong with that logic please feel free to point it out rather than make an ad hominem attack.

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