Wednesday, June 15, 2011

JBI, Inc. Receives Solid Waste & Air Permits for P2O


8K FILED ~

http://xml.10kwizard.com/filing_raw.php?repo=tenk&ipage=7669961

Wednesday, June 15 2011 6:04 AM, EST JBI, INC. FILES (8-K) Disclosing Other Events, Financial Statements and Exhibits Edgar Online "Glimpses"
Item 8.01 Other Events

On June 14, 2011 , JBI, Inc. ("JBI" or the "Company") announced that its wholly owned subsidiary JBI RE #1 INC ("JBI RE#1") has been issued a Solid Waste Management Permit (the "Solid Waste Permit") by the New York State Department of Environmental Conservation (the "NY DEC") for use at the Company's Plastic2Oil (P2O) facility located in Niagara Falls, NY . The Solid Waste Permit is effective as of June 14, 2011 and expires on June 30, 2014 .

In addition, JBI RE#1 was issued an Air State Facility Permit (the "Air Permit") by the NY DEC for use at the Company's facility located in Niagara Falls, NY . The Air Permit is effective as of June 14, 2011 and expires on June 30, 2014 . The Air Permit authorizes the operation of 3 P2O processors at the Company's Niagara Falls , NY facility.

In Dec 2010 , JBI was issued a Consent Order to operate a P2O processor while State Facility Permits were acquired. JBI filed all documentation and applications with the NY DEC within the timelines identified in the Consent Order.

Authorized production at the P2O factory located in Niagara Falls, NY is: JBI will convert scrap plastic that does not have a reasonably available recycling market (post consumer and industrial sources) into liquid and gaseous materials which are recovered for utilization. The gaseous portion will be used to help fuel the P2O process. The liquid will be sold to refining, fuel, and polymer production markets.

The plastic waste allowed to be converted into fuel is described in the permits as: waste plastic material Type 2 (HDPE), Type 4 (LDPE), Type 5 (PP), and other plastics not expressly prohibited by the JBI's Air Permit. At this time, plastics containing halogens are prohibited by the Air Permit.

The above description of the Solid Waste Permit and the Air Permit (collectively the "Permits") does not purport to be complete and is qualified in its entity by reference to the Permits which the Company has filed as exhibits to this Current Report on Form 8-K.

Item 9.01 Financial Statements and Exhibits.

(d) Exhibits

99.1 Solid Waste Management Permit Authorization-Under Article 27, Title 7 99.2 Air State Facility

Monday, June 13, 2011

PRW.com issues report on JBI's P2O process


Plastics-to-fuel commercialisation a step nearer
By Barry Copping
Posted 13 June 2011 12:04 pm GMT

JBI’s John Bordynuik: Process refinements enhance cost-effectiveness and cleanliness of fuels from waste

A New York State company claims to be the furthest advanced in North America in producing fuel oils and gases from waste plastic. The goal of converting plastics to fuel has been the Holy Grail of recycling for years, but only recently has the process been made commercially viable.

Niagara Falls-based JBI Inc. announced in May that Oxy Vinyl Canada, a subsidiary of Occidental Petroleum, has agreed to purchase JBI's low-sulphur heating oil from the company’s pilot-scale facility for $110 per barrel (42.5p per litre).

JBI's Plastic2Oil process converts mixed waste plastic into separated diesel, heating oil, and light naphtha fuels. The company’s CEO John Bordynuik has designed quality controls, fuel blending, and automatic additive injection so that the fuel produced is a final product, unlike crude oil.

Bordynuik said his invention allows JBI to produce fuel at a fraction of the cost of major refineries, and can convert two tons of plastic into 109 barrels (17,300 litres) of fuel.

JBI's Plastic2Oil (P2O) process accepts mixed sources of waste non-recyclable plastic, focusing initially on post-commercial and industrial sources, since these are readily available in large supply, and present a cost-effective solution for companies who currently have to pay to dispose of this plastic waste.

The feedstock is passed through a shredder and granulator before being loaded into a reactor with a payload of 1800 pounds (820kg), which is processed in less than one hour. The plastic is heated in a processor chamber using its own previously made off-gas, stored in a gas compression system. By compressing, storing and then using the gaseous byproduct to power itself, P2O achieves internal recycling, which adds to efficiency and cost reduction, says the company.

In the reactor, the plastic hydrocarbons are cracked into various shorter hydrocarbon chains and exit in a gaseous state. JBI's proprietary catalyst and process engineering are claimed to capture nearly 90% of the waste’s hydrocarbon content of plastic. Any residue or non-usable substances (about 2%) remain in the processor chamber and are automatically removed. From the processor, the gases containing gasoline and diesel are condensed and separated for storage. All the gaseous "light fractions" (off-gas), such as methane, ethane, butane and propane are liquefied by compression and sold separately.

Bordynuik plans to build two more processors at Niagara Falls to train operators on, then install them at companies that generate a lot of plastic and send trained operators to run them.

He commented: "We're doing joint ventures with large companies where we [will] go in and build it on their site," he said. "We're not selling the machines. We're going to own and operate and run them."

Bordynuik said he chose to locate his "plastic2oil" processors in Western New York because of a spectrum of local support, from politicians to the machine shops which are making the parts used in the processing machines.

JBI’s largest competitor in plastics-to-fuel processing is Dow Chemical. According to a report funded by the American Chemistry Council and published in April, there are 23 companies worldwide that have successfully developed technology to convert some plastics into fuel. When the study was published, no North American group had yet completed a fully commercial-scale plastics-to-fuel conversion machine.

http://www.prw.com/subscriber/headlines2.html?cat=1&id=1307966686

Sunday, June 12, 2011

Buffalo News Reporter Updates Report on JBII


JBI finds way to turn plastic into fuel

Niagara Falls company invents new process that could transform energy tech

By Maryellen Tighe
News Business Reporter
Published:June 11, 2011, 11:57 PM
Updated: June 12, 2011, 8:42 AM

If John Bordynuik has his way, homes will be heated with milk jugs, and cars will run on plastic bags.

Bordynuik, president and CEO of JBI Inc., has invented a process to convert waste plastic into fuel at a plant in Niagara Falls. His company plans to install the machines at factories and recycling facilities.

Bordynuik said his invention allows JBI Inc. to produce fuel at a fraction of the cost of major refineries, and can convert two tons of plastic into 109 barrels of fuel.
The goal of converting plastic to fuel has been the Holy Grail of recycling for years, but only recently has the process been made commercially viable.

"Plastics are made from natural gas. They're simple products, and this process breaks them down into another simple energy form," said Greg Wilkinson, president of Third Oak Associates, a Toronto-based communication and strategy firm specializing in chemicals and plastics. "I think the combination of the technology being more mature today and the high cost of energy and fuels makes the investment in this type of technology economical."

Wilkinson said the technology was already "on the drawing board" when he started working in the chemical industry 20 years ago, but three or four years ago, most productions were still lab-based and hypothetical.

According to a report funded by the American Chemistry Council and published in April, there are 23 companies worldwide that have successfully developed technology to convert some plastics into fuel. When the study was published, no North American group had created a commercial-scale plastic-to-fuel conversion machine.

Bordynuik's factory is a "pilot scale facility," used mostly for testing and smaller than a commercial operation.

The basic difference between plastic and fuel is the length of the hydrocarbons, Bordynuik said, which are what make up the plastic. The hydrocarbons of plastic are more than 10 times longer than those in fuel.

"Our technology specifically cracks (the hydrocarbons in) the plastic in the ranges that we need to create fuel," he said. "At specific lengths, where we want it, consistently."

When plastic arrives at the facility, it is shredded and fed into a rotary reactor, Bordynuik said. The reactor melts the plastic into a vapor.

"If you just heat up plastic, normally you'll end up with a plastic that's virtually worthless," he said. "There's a lot of companies that have tried."
The vapor goes to one of the two catalyst towers where it is broken down into different types of fuel.

The fuel that comes out of the towers is unrefined, but cleaner than some of what you buy at the pump, Bordynuik said. And the process is cleaner than oil refining.
"That machine has virtually no emissions, it emit(s) less than a natural gas furnace," Bordynuik said.

Air emissions for the unit are similar to standard natural gas combustion products, said Megan Gollwitzer, spokeswoman for the New York Department of Environmental Conservation, in an e-mail. The unit is operating under a consent order while permits are pending.

Bordynuik plans to build two more processors at his Niagara Falls site to train operators on, then install them at companies that generate a lot of plastic and send trained operators along to run them.
The processor uses 8 percent of the fuel it creates to run, melt and process the plastic.

"We're doing joint ventures with large companies where we (will) go in and build it on their site," he said. "We're not selling the machines. We're going to own and operate and run them."

About 40 people work on the "plastic2oil" process at JBI, but as more processors are installed and more operators are trained, Bordynuik expects the staff to grow.
Steve Manolis, operations manager at Coco Asphalt Engineering in Toronto, said his firm is testing fuel from JBI.

"We're still in evaluation phases. We've done a plant trial," Manolis said. "Up until now everything's been running normally."

Bordynuik invented his process in early 2009, but could only convert about two pounds of waste plastic into a quart of fuel. With help from other chemists, his process was scaled up enough to create a machine that could process one ton of plastic.
The company, headquarters in Thorold, Ont., has since attracted investors and is traded on the over-the-counter exchange under symbol JBII. It closed at $3.59 Friday.
Bordynuik said the process and the plant were well received by the state DEC.
"There was one person at the DEC who looked at the chemistry of the process and what we did, and he wrote a letter allowing us to construct a factory to gather data for a full permit," Bordynuik said. "They saw the machine doesn't pollute. It's clean, so they said 'go, build.'"

Bordynuik said he chose to locate his "plastic2oil" processors in Western New York because of the local support, from politicians to machine shops, that are making the parts used in the machines.

JBI has competition. Waste Management, which processes much of Western New York's recycling, is working with Agilyx, from Portland, Ore., to develop that company's plastic-to-fuel conversion process, said Wes Muir, Waste Management director of communications.

It is possible there will be an Agilyx facility in Buffalo someday, said Don Majka, vice president of sales and marketing for Waste Management recycling.
"We're looking to develop about four facilities ... these are really meant to be kind of small-scale units that can be put in facilities throughout the country," Muir said. "It's hard to recycle plastics. It really depends on the type of plastic and where they're found."

The plastics that facilities like JBI Inc. and Agilyx would use are not high-quality plastics, Majka said. Higher-grade and cleaner plastics can be sold for more for other uses, so they are not used for plastic-to-fuel conversion.
"Agilyx is not going to be buying the Tide bottles and the Pepsi bottles," Majka said. "They're going to be buying something dirtier than that."

Numerous companies are pursuing the same plastic-to-fuel goal. Envion, in West Palm Beach, Fla., has a different method of heating its plastic, said Pio Goco, vice president of business development. A far infared heating system, similar to a microwave, is used.

"The breakthrough in this technology happened not in the U.S., but in Asia in 2004," he said.

Goco said the technology is changing the way people think about waste, because it is a resource.

Dow Chemical Company, in Midland, Mich., is also researching how to convert plastic to energy, said Jeff Wooster, plastics sustainability leader for Dow's North America plastics business. Last month, the company experimented with burning plastics in a special furnace.

"If you think of plastics as a stored energy source, there are many ways you can recover that energy," he said. "It doesn't make sense to bury plastics in the ground when we are digging oil and coal out of the ground."

mtighe@buffnews.com

Saturday, June 11, 2011

Zardiw summarizes JBII AGM High Points


JBII AGM High Points:

Things that expedite the flow:

Suppliers are shareholders
Construction entities are shareholders

Thus everything expedited.
---------------------

Major media. Now ready for that. Didn't want that until they could say they are selling to companies on an ongoing basis. Lends Credibility.

Permanent Permit is 'Very Close'
Air and Solid Waste Permit need to be issued at same time.

Not selling to refineries, but selling a finished product to retail consumers.

Concentrate on sites that can accomodate many processors in one place.

NY has some of the strictest permitting requirements, which means getting
permitted in other states should be a slam dunk

Paper mills: 10% of output (plastic) goes to landfills
Businesses shipping B2B generates large quantities of plastic
Carpet Manufacturers: Produce 20T/Day 'shavings'/Machine

Residue is now removed automatically, without having to cool down machine

Heating oil much more profitable than gasoline/diesel, since specs much more flexible.

Large companies have many subsidiaries around that will take all we can produce.

Chrysler one of many sources of plastic now

Companies would use our product in boilers.

------------------
Financing Options:

On machines: Perpetual Annuities
Kuwait/ME: Billionaire Conglomerates
Whales
Fund managers
-------------------

Several Patents: In progress

5,000 Shareholders in JBII

Coco Paving: 1-2M Liter/Year Fuel Sale

Less than $10/Barrel production cost confirmed..mainly because of 8% of the output used to run machine.
If they used electricity to heat the plastic, it would be $45-50/Barrel

Quotes:

'Plastic is Free'
'Positive Cash Flow #1 Priority'
'Go Big or Go Home'
'Validation is Yesterday'

rowgr reports on CEO's comments at JBII AGM

I took many notes to report back to our fellow investors in Iowa - here is my recap that I shared. Once again, nice meeting you justice and other iHubbers.

John spoke for an hour or so. He started with discussing the financials over the last year. He mentioned the fact that the reports have been filed late the last couple of times. He said he would rather be late and accurate than on time and incorrect. JBI is working on getting the in house infrastructure in place that will be able to handle the processing of financials for a company with multi-currencies and multi-locations. The are actively searching for a CFO to cap this team when it is completed.

He spoke many times about the fact that many of the suppliers and contractors utilized by JBI are shareholders. They compensation for many of these is in stock not cash. Therefore, they are building their vested interests in the company by providing high quality products in a quick turn around.

The processor has undergone a redesign over the last year. They key features are:
1. Low capital costs
2. Low operating costs
3. High quality fuel (Fuel oil 2,4,6 - diesel, gasoline, natural gas)
4. Highly automated
5. Residue is now removed without shutting down the machine
6. It is a continuously processing machine
7. Low maintenance time
8. Modular design

He mentioned that there has been no wear on the tank with the processor that has been running for a year. He said that a tank could easily work for 10 years without having to be replaced.

Products:
As mentioned, the processor can now produce many types of fuel. It produces fuel oil 2, fuel oil 4, fuel oil 6, diesel and gasoline that does not need to be refined, and natural gas that is used to run the processor. The sulphur content of the product is .17 or 1 ppm or less. They also are completed the work on a fuel lab on site so they can do all the testing of the products with immediate results instead of having to wait for outside labs.

John made a point of mentioning that many of the processes that JBI has been through in the last year or two have taken more time than originally planned. He stated that JBI wants to do things correctly and completely so there is no refuting the results. They have used the best labs to validate the product, gone through due diligence with many large companies, and are in the process of getting patents for many of the features and parts of the processor.

He talked about the business plan for Joint Ventures with JBI. He said that they are now focusing on sites that will utilize many machines. They feel that by doing this it just solidifies how well the JBI processors work. They are working with Smurfit-Stone to get a site started in Florida. He mentioned that though Waste Management, JBI is getting all the plastic wastes from Chrysler. He also mentioned that there are some Joint Venture agreements that are coming to completed with some Fortune 500 companies that have been in the works for a year. The structure for these joint ventures will be that JBI will own and operate the processors on the sites. JBI will not pay for the waste plastics. In return, the JV partner will receive 20% of the revenue from the products manufactured on their locations.

John talked about the support that JBI is receiving. Many of the suppliers are shareholders. Many of the manufacturers are shareholders. He spoke about having State and local support for the company with state senators, the Buffalo mayor, and the NY Empire State Development Department. He mentioned they have the full support of the NY DEC. He also mentioned that all filings have been completed and the final permits should be received soon. Once this happens, the plant will expand to three processors. He also spoke about the last pipe that was issued. Its purpose was to achieve working capital for expansion and starting sites. The pipe included high net worth individuals, a middle east billionaire conglomerate and fund managers.

As the final part of his presentation, he brought the director of business development up on stage. Together, they announce the signed agreement with Coco Paving from Toronto for the sale of 1 to 2 million liters of product for the first year. This sale was completed at 5:05 pm on Friday afternoon.