Wednesday, October 20, 2010
JBII discusses the significant competitive advantages of owning a fuel blending site
"During the second quarter of 2010, the Company worked to upgrade its 1 million litre (250,000 gallons) fuel blending site to current standards. Equipment was fully tested and parts were replaced as required. The site was also completely repainted. The fuel testing lab at our blending site was equipped with analyzers that will allow the company to test both diesel and gasoline for commercial and retail sale. Several employees attended an independent training program to become certified operators.
The bulk fuel blending site enables the Company to
1. Store fuel from our P2O processors.
2.Blend additives (if required) to bring our fuel to a standard that permits the wholesale/commercial/retail sale of our fuel.
3.In-house testing of blended fuel without the cost and delays of using external laboratories.
4.Distribute our fuel to commercial and retail customers.
5.Load four tanker trucks simultaneously through our bottom-loading rack.
6.Unload tanker trucks through a separate unloading rack.
7.Inject butane or ethanol consistent with industry practices.
8.Flexibility to blend fuels including: gasoline, diesel, kerosene, furnace oil, and specialty fuels."
"By acquiring the bulk fuel blending site, JBI is not dependent on 3 rd party fuel refining, processing, testing, sales, and distribution. The site will service local JBI processors and enables the Company to maximize the sale price of the output by selling further down the value chain. The output from the process can still be sold to refineries at market rates."