Friday, July 29, 2011

techieask.com profiles JBI's P2O technology

Plastic2oil to Convert Hazardous Plastic into Fuel
News — 28 July 2011

You may be one of those few people who care for the environment and do you bit to keep it clean and green. You may be avoiding the use of plastic and in case you have to use it, you would send it for recycling. But did you know that most of the plastic that is produced today is non-recyclable, which means that once it is used, and then all it does is pollute the surroundings. But there’s something that would put you at ease. A Canadian company called JBI has come up with a method to convert this toxic substance into a fuel.

The process is called Plastic2Oil and begins with feeding a variety of plastic to a shredder, followed by a granulator, a machine that can be fed with up to 816.5 kg of plastic. Then produce of the granulator is heated in a process chamber, after which it is transferred to the main reactor. A certain catalyst is added to this which breaks down the hydrocarbons of the plastic and converts them in to smaller chains of hydrocarbons that exist in the gaseous phase.


These gases are compressed and stored. The gases that consist of inflammable fuels are separated and the leftover fuel is stored. Methane, ethane, butane and propane are separated and stored separately. The whole process is extremely eco-friendly too. It is believed that the emissions of the process are much lesser than that of a natural gas furnace. The whole process takes approximately an hour to complete and the conversion rate is close to 90%. The rest is dumped as landfill, or even burnt for fuel.

Plastic2Oil is gaining popularity gradually as the US and the UK are planning to install these plants in their respective countries in the near future.

Friday, July 22, 2011

Chrysler Canada Applauds JBI's P2O Technology

Chrysler Canada’s Waste Plastic Turned to Fuel
By Eric Mayne WardsAuto.com, Jul 22, 2011 10:09 AM

Waste plastic from Chrysler Canada’s Brampton Assembly Plant is helping to keep neighboring factories running instead of eating up precious landfill space.

JBI, an Ontario-based company, has developed technology that converts waste plastic to fuel ranging from heating oil to diesel.

“Because plastic is made from the same hydrocarbons that make regular fuel, we can make and blend what we want,” CEO John Bordynuik tells Ward’s. “It can also be used to make plastic again.”

And there is no shortage of waste plastic. The U.S. Environmental Protection Agency estimates some 30 million tons (27.2 million t) of the material is tossed into America’s landfills every year.

JBI’s Plastic2Oil technology heats shredded plastic and collects gaseous hydrocarbons in a reactor. The byproduct of this process then is condensed to liquid fuel.

Plastic2Oil takes less than an hour to process an 1,800-lb. (816-kg) load of plastic, recovering about 86% of the material’s energy content, Bordynuik says.

JBI’s plant in Niagara Falls, NY, generates more than 100 barrels of fuel for every 20 tons (18.8 t) of plastic it processes. All grades of plastic can be accommodated with Plastic2Oil, Bordynuik says.

To date, only polyethylene terephthalate – the plastic used to make soda bottles – is widely recycled. “And Coke buys all that anyway,” he adds. “We’re looking for all the other plastics.”

They contain higher hydrocarbon concentrations. “Therefore, we get a higher yield of fuel.”

Fuel oil appears to have the most market potential. “There’s just so many factories that need fuel,” Bordynuik.

JBI recently inked a deal to deliver fuel to Oxy Vinyls Canada, that country’s sole manufacturer of vinyl resins. c2Oil process recovers about 86% of material’s energy content.

“Transportation fuels have much higher standards, which we can meet,” Bordynuik says. “But they require many more additives and there’s a lot more regulation involved.”

Then there is the prospect of producing more plastic.

“The light naphtha stream that we make can be used by the refinery to make virgin plastic because we’ve broken down the molecules into their virgin form,” Bordynuik says. “If you took plastic and you melted it and created something new with it, the bonds are much weaker.”

Chrysler is mum on its dealings with suppliers but welcomes the environmental benefit of technologies such as Plastic2Oil.

“Chrysler Group is committed to being environmentally responsible and creating a sustainable future,” spokeswoman Jodi Tinson says in a statement. “Being able to divert plastic waste from landfills to processes that provide meaningful solutions is one way that we can demonstrate that commitment.”

JBI has had discussions about taking waste plastic from General Motors plants, Bordynuik says.

The process represents an alternative for plants struggling to reduce their environmental footprint. “It’s not costing money to dispose of it or handle it.”

© 2011 Penton Media, Inc. All rights reserved.

Monday, July 18, 2011

neptune69 presents compelling case for long term investment in JBII

VALUATION ANALYSIS

Conspicuous by its absence on this message board, is a fundamental analysis of the valuation prospects for JBI predicated on an objective basis..not a penny stock short term trading mentality. For those of us who are long term investors, posit the following:

There is approximately 150 million tons of newly generated plastic feedstock per year-worldwide-50 million tons in the US.

JBI's processor produces 109 barrels of fuel per day from 20 tons of plastic feedstock.

The value per barrel is approximately $100.

The marginal cost per barrel is approximately $10.

Assume that JBI gives a $20 per barrel discount to the buyer of such product.

So JBI has an EBITDA of approximately $70 per barrel.

So JBI has a Net Income After Taxes of approximately $40 per barrel.

Each processor produces approximately 40,000 barrels of fuel per year.

Each processor produces $1.6 million in Net Income after taxes per year.

Each processor consumes 7300 tons of plastic feedstock per year.

There is a worldwide capacity for 20,000 processors, based on 150 million tons.

There is a worldwide capacity of $32 BILLION in Net Income After Taxes for JBI processors.

Assuming a PE ratio of only 15X...that is a Market Capitalization potential of 480 Billion Dollars!

All of this EXCLUDES the plastic feedstock that is currently resident in dump sites thoughout the world which is estimated to be 6-7 times the annual generation of new plastic feedstock!

That would be, using the aforementioned assumptions, a Net Income After Taxes of $200 Billion dollars.

This is what LONG TERM investors are focusing on with respect to an investment in JBI.

Predicated on a currently outstanding number of shares of approximately 60 million, the $480 billion market capitalization, excluding the dump sites, would equate to approximately $8000 per share. Given the extraordinary Return of Capital invested, that is $1.6 million in Net Income After Taxes on a capital investment of approximately $600k per processor, the resultant likely future dilution is de minimus, from requisite future equity issuances. Debt financing and internal cash flow should be ample to satisfy the investments in future processor manufacturing.

Friday, July 8, 2011

Scientific American (The Wall Street Journal of Science) picks up on JBII


Plastic2Oil Converts Waste Plastic to Fuel

By: Glenn Meyers
A Canadian waste plastic-to-fuel company, John Bordynuik, Inc. (JBI), has developed a process that uses those plastics as a feedstock, and turns them into fuel. CleanTechnica


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