Thursday, March 24, 2011
In addition, JBI is pleased to announce the signing of a letter of intent with a confidential party for the purchase of the naphtha produced from the Company's Plastic2Oil process. The term "naphtha" is used when fuel does not contain additives required for gasoline used as transportation fuel. This is very similar to the relationship between fuel oil #2 and diesel fuel. When road-use additives are not present, the petroleum product is referred to as fuel oil #2 and conversely, when road-use additives are present, the product is termed diesel. The confidential party named in the letter of intent has the capacity and interest to purchase up to approximately 144,000 gallons of naphtha per week, as it is available from JBI, Inc., at comparable market rates for such naphtha - rates that fluctuate similar to any other commodity. The Company and the confidential party expect to consummate their naphtha sale agreements in April 2011.