Monday, August 22, 2011

'Make my Day' Rawnoc's take on the JBII 10Q


JBII 10Q -- SOME POSITIVE TIDBITS:

(1) P2O segment already showing a gross profit despite the small sales! ($23,380 in gross profit on sales of $81,101 for the P2O segment)
If P2O sales can be profitable right out of the gate when tiny, just imagine how profitable P2O will be as sales multiply?

(2) "As of August 19, 2011, with a NYMEX crude price of $82.81, Coco Paving is presently ordering and purchasing full tankers of petroleum distillate at $109.80 per barrel. Coco Paving has stated it is pleased with our Plastic2Oil fuel and they are ordering from the Company on a regular basis."

(3) "The Company retained two fabrication vendors to produce racked modules for Plastic2Oil processors. All modules will be manufactured in the United States. The Company’s management and new hires are working with the fabrication vendors to expedite manufacturing. During the first and second quarter of 2011 the processor was modularized for simplified expedient production and assembly of processors offsite. Processors #2 and #3 are being installed at the Plastic2Oil factory at this time, in modular form."

(4) "The P2O processor is capable of producing #6 fuel, #2 fuel, diesel, and light naphtha. The Plastic2Oil processor has been tuned to reduce naphtha production to less than 2% because the market price for naphtha is significantly less than for #2 or #6 fuel"

(5) "Chrysler conducted an extensive audit and now ships free plastic to our factory."
"After a full review, General Motors is also now providing free waste plastic to our P2O facility."
"The Company receives free waste plastic for our Plastic2Oil processor(s) from Chrysler, General Motors, major food packagers, dairy companies, agricultural plastics, and many other sources. The company is recycling thousands of gas tanks, bales of plastic film and many other free plastics that are usually sent to landfill. The Company does NOT pay for any plastic. None of the plastic that the Company has received to date has required sorting."

(6) "the Company also designed and has nearly completed manufacturing of a premelt system to allow waste plastic to enter the processor whole in bale form, or in large pieces (e.g. gas tanks, bumpers) without shredding or granulating the feedstock. This premelt system will maximize production at third party facilities (i.e. paper mills or MRF sites) and other waste stream sites by allowing minimal handling of feedstock. Management’s highest priority is bringing modular processor #2 and 3 online so the Company can become cash flow positive"
"During the second quarter of 2011 the Company designed and engineered a premelt loader for the Plastic2Oil processor to eliminate handling, shredding, and bagging of waste plastic. With the premelt loader, bales or supersacks of plastic are set on a conveyor and then are loaded whole into the premelt reactor thereby eliminating shredding and much handling. During the modularization of the processor, the CEO was able to eliminate the off gas compression system in favor of a simplified low-cost off gas handling rack (4’ x 4’ x 4’) for better control and at 1/5 of the cost. The cost savings through modularization has been used to offset the cost of the premelt loader."

(7) "After months of comprehensive due diligence, RockTenn (NYSE:RKT) executed a 10-year exclusive agreement for conversion of their waste plastic into fuel which has been measured at thousands of tons per day."

(8) "The Company is purchasing a machine shop a few minutes from the Plastic2Oil factory so that additional processor assembly and work can occur while the Plastic2Oil processor(s) operate. The Company has also hired a mechanical engineer, a steel waterjet cutter, electrician, welders, more operators and material handlers to train for offsite locations."

z

Sunday, August 21, 2011

Recent Article Discusses Positive Benefits of JBI's P2O Technology


Waste Plastic to Fuel Pilot Project

Clean Technica writes about a Canadian company, John Bordynuik.Ink (JBI) which has developed a process that uses waste plastics as a feedstock and turns them into fuel.
Under the name Plastic2Oil, it has developed and scaled an original processor that converts difficult-to-recycle waste plastics into separated, refined fuels (diesel combined with lighter fractions of gasoline). One litre of oil is extracted for every kilogram of plastic.

JBI has installed a 20 metric-ton pilot plant in Niagara Falls, New York. On June 14, the New York State Department of Environmental Conservation gave the go ahead for the plant to begin operations. The plant has the ability to process 22 tons of plastic per day and operates continuously. JBI has already entered into supply agreements.
JBI reports it has successfully overcome traditional barriers in this field, including:

The acceptance of unwashed, mixed waste plastics
• Removal of residue without processor shut down
• Refining of fuel without a high-cost distillation tower
• Equipment that is not susceptible to pinhole leaks
• Emissions are less than a natural gas furnace, while the process releases over 14 percent oxygen into the air

Unlike existing plastic-to-oil operations, JBI accepts all trash plastic, achieving a rate of conversion into clean fuel of almost 90 percent, while requiring minimal external energy (reactor is heated with approximately 8 percent off-gas captured and compressed). All waste plastic is fed through a shredder and a granulator and then heated in a process chamber, after which it proceeds into the main reactor. JBI reports the system can handle up to 1,800 pounds (816.5 kg) at a time – good news about materials that traditionally ended up at a landfill.

http://www.anthropower.com/waste-plastic-to-fuel-pilot-project

Oil And Gas Chronicle Issues Report on JBI's P2O Technology



Plastic 2 Oil Turns Landfills into (stinky) Gold Mines
August 21st, 2011

Whether we like it or not, oil is as economically necessary for our (current) global society as it is a foundation for our fuels … and it’s not getting easier to come by. Even those claims, however, are often met with controversy – some claiming that oil is running out, others claiming that oil is being hoarded by greedy individuals.

Regardless, our society’s stability is dependent on oil, and – as oil gets trickier to acquire – some “outside the box” thinkers often go back to old maxims. In this case: one man’s trash is another man’s treasure.

Enter: Plastic 2 Oil, which aims to begin “mining” non-degradable plastics from landfills in order to then convert back into petroleum fuels.

The Plastic 2 Oil project is underway and being conducted by JBI and RockTenn Company. JBI, Inc. is a domestic alternative oil and gas company and has developed a process that converts waste plastic into fuel (Plastic 2 Oil), without the need of further refinement. JBI patented the Plastic 2 Oil technology and has a ten year deal, with a renewal option, to build and operate Plastic 2 Oil processing stations at RockTenn’s facilities.

The process accepts mixed sources of non-recyclable plastic, and focuses on post commercial and industrial sources (since these are most readily available). The plastic waste is passed through a shredder and granulator and loaded into a hopper with (1800 lbs. at a time) using a forklift. The “hopped” plastic is then loaded into a processing chamber where it is heated (using its own chemical gasses) and then stored in a gas compression system. By compressing, storing and then using the gaseous byproduct to run itself, Plastic 2 Oil “pushes” the plastic to acieve “internal recycling”, which boosts overall efficiency. While inside the reactor, the plastic hydrocarbon chains are “cracked” into shorter chains, which exit the processor as a gas.

JBI’s proprietary catalyst and unique process engineering enables JBI to capture nearly 90% of the hydrocarbon content of plastic, with any remaining residue or non usable substances (about 2%) removed during the normal course of operations. The remaining gasses contain small amounts of gasoline and diesel fuel, which are then condensed into liquid form and separated before being routed into temporary fuel tanks. The remaining gaseous “light fractions” – which include methane, ethane, butane and propane – exit the temporary fuel storage tank and are, themselves, compressed and stored for later use.

Each 1800 lb. load of discarded plastic takes less than one hour to process into usable, non-ocean endangering fuel (or, less-ocean endangering, at any rate).
RockTenn, a paper and packaging manufacturer providing a wide range of marketing and packaging products across the American continents, generates thousands of tons of waste plastic every day, which (until recently) the company had been storing in plastics-only landfills for years. Under a new Agreement with JBI, Plastic 2 Oil will have exclusive “mining rights” to the RockTenn landfills, which should translate to many millions of gallons of fuel.

The costs involved with Plastic 2 Oil’s process have not been publicly released (and may never be), and that may be the only red flag here – since, if the conversion process is hugely expensive than the end product will also be costly. That said, it’s probably better that these landfills are being put to good use rather than, you know, just left to sit there and fill up some land.

You can take a look at some photos of Plastic 2 Oil’s operations, below, and read through the company’s full press release, as well.

JBI, Inc. Announces a Ten-Year Agreement for Commercially Viable Conversion of Waste Plastic to Fuel

THOROLD, Ontario, Aug. 8, 2011 (GLOBE NEWSWIRE) — JBI, Inc. (OTCQX: JBII.PK – News) is pleased to announce that on July 29, 2011, JBI entered into an agreement with Rock-Tenn Company (RockTenn) to convert mill by-product waste into fuel using JBI’s Plastic2OilTM technology.

Under the agreement, JBI has an exclusive ten-year license with a renewal option to build and operate Plastic2Oil(TM) processors at RockTenn facilities to process RockTenn’s waste plastic at paper mills and Material Recovery Facilities (MRF) and to mine and process plastic from RockTenn’s plastic-filled monofill sites.

RockTenn’s paper mills and MRFs currently produce thousands of tons of plastic per day. To handle the plastic waste stream, RockTenn has been storing this by-product in company-owned plastic-only monofill sites for several years. The agreement gives JBI the exclusive rights to mine plastic from these sites.

JBI’s Founder & CEO John Bordynuik said, “We are honored that RockTenn has chosen JBI to be its long-term partner in this venture and believe this provides further validation that we have a viable commercial process to handle not only the critical issue of waste by-product but also rising energy costs. RockTenn has the industrial relationship and feedstock to support hundreds of Plastic2Oil(TM) processors. We anticipate a mutually beneficial relationship for both parties and intend to expand as quickly as possible. RockTenn currently has sites that can support clusters of processors. In preparation for this agreement, we have designed our processors to be modular ‘plug and play’ to allow rapid deployment across RockTenn’s locations.”

Andrew Meggison was born in the state of Maine and educated in Massachusetts. Andrew earned a Bachelor’s Degree in Government and International Relations from Clark University and a Master’s Degree in Political Science from Northeastern University. Being an Eagle Scout, Andrew has a passion for all things environmental. In his free time Andrew enjoys writing, exploring the great outdoors, a good film, and a creative cocktail.

http://www.oilandgaschronicle.com/tag/plastic/

Sunday, August 14, 2011

JBII to Mine Plastic for RockTenn


JBI will "mine plastic" from RockTenn landfills to convert to oil

by Eric Loveday (RSS feed) on Aug 14th 2011 at 8:55AM
Plastic 2 Oil logoJBI has entered an exclusive deal with RockTenn Company to convert mill by-products into fuel using JBI's patented Plastic2Oil technology.

Under terms of the agreement, JBI has a ten-year license with a renewal option to construct and operate Plastic2Oil processing stations at RockTenn's facilities. JBI will take RockTenn's waste plastic and covert it to useable fuels, including naphtha, fuel oil and something similar to natural gas.

RockTenn's paper mills generate thousands of tons of waste plastic per day and to handle that stream of waste, RockTenn had been storing the by-product in company-owned, plastic-only landfill sites for years. This agreement gives JBI exclusive rights to mine plastic from these sites (how strange does that sound?). According to JBI, RockTenn has the feedstock to support hundreds of Plastic2Oil processors and, as such, JBI designed its conversion systems to be modular, allowing for rapid deployment across RockTenn's locations.

Thursday, August 11, 2011

New Energy & Fuel reports on JBI's P2O technology

Plastic Recycled Back to Oil Jumpstarts
August 11, 2011

JBI of Thorold, Ontario Canada has entered into an agreement with Rock-Tenn Company to convert Rock-Tenn’s mill by-product waste into petroleum products using JBI’s Plastic2Oil™ technology.

JBI’s Plastic2Oil™ can use unwashed, mixed waste plastics. JBI developed and scaled up the original processor, then enhanced and commercialized a process that converts difficult to recycle waste plastics into separated, refined fuels. The current model processor runs continuously, currently at 20 metric tons per day with a footprint of about 3000 square feet.

JBI's Plastic2Oil Reactor

There are several processes that can convert plastic and other hydrocarbon materials into products for use in the production of fuels, chemicals and recycled items. The list includes pyrolysis; catalytic conversion; depolymerization; and gasification. The Plastic2Oil conversion process is most similar to pyrolysis, and involves the cracking of plastic hydrocarbon chains at ambient pressure and low temperature using a reusable catalyst.

The processor installation uses its own off-gas as fuel from about 8% of the feedstock, making for very low operating costs: 67kWh electricity for motors and pumps, and approximately $7/hr for a cold start using natural gas is all the outside energy required.

A curious aspect of the emissions is the releases are less than a natural gas furnace, and the process releases about 14% oxygen back into the air. For New York State installations emissions monitoring and scrubbers on the stack are not required.

JBI’s process accepts mixed sources of non-recyclable plastic. Although many sources of feedstock are available, JBI is 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. It’s the sensible case of going to where the mountain already exists and gets built more each day.

The payoff is each 2.2 pounds (1kg) of plastic yields about a liter, a bit more than a quart of oil products in the form of fuels.

The raw plastic feedstock is first treated to a shredding and then granulated. A hopper is loaded with about 1,800 pounds of the plastic granules. The plastic is loaded into the processor by a continuous conveyor belt between the hopper and reactor. The plastic is then fed into the processor chamber where it is heated by burning off-gas produced from the conversion process.

In the reactor, the plastic hydrocarbons are cracked into various shorter hydrocarbon chains and exit in a gaseous state. JBI’s proprietary catalyst and unique process engineering enables capturing nearly 90% of the hydrocarbon content from the plastic. Any residue or non-usable substances (about 2%) remain in the processor chamber and are automatically removed while operating.

From the processor, the gasses containing gasoline and diesel are condensed and separated, then proceed into temporary fuel tanks. All of the gaseous “light fractions” (off-gas), such as methane, ethane, butane and propane, exit the temporary fuel storage tank and are compressed and stored. Butane and propane liquefy when compressed and can be stored and sold separately. Methane can be sold into the natural gas grid and ethane can be resold back into the chemical market.

An entire cycle for one 1800-pound load takes less than one hour to process into fuel for a little over 200 gallons of recycled fuel products. At $2 per wholesale gallon a reactor will earn $400 – nearly $10,000 per day.

The agreement announcement follows developments made by John Bordynuik earlier this year. Now the Plastic2Oil processor has two columns supporting 4 catalyst trays. Quality control includes two columns for control and specificity of fuel fractions, a cyclone (for particulate removal in vapor), fuel filters (for particulate removal in liquid), and a centrifuge (for additional redundant particulate trapping), as well as column enhancements to guarantee particulate free fuel.

Fuel additives are injected inline while fuel is being produced to increase their effectiveness on both heavy and light fuel condensing systems.

That 2% of residuals compounds that don’t make it into products is inert enough after processing to be simply sent to a landfill. This makes a 50-fold reduction in waste. That in turn makes one more feature extremely attractive. The new residue removal system works while the processor is running, so the reactor does not have to be cooled down or stopped to remove residue. Plastic recycling is now a continuous process instead of a batch operation. That explains the attractiveness in a major way.
Mr. Bordynuik, JBI’s CEO and primary engineer, deserves great credit for coming this far. The competitive note is the catalyst is a trade secret, and justifiably so, delivering a very short reaction time and impressive yields.

The point that consumers might note is that 2.2 pounds of many plastics are worth about $2.00. While the demand isn’t there yet for widespread reactor installations, it will come. It will be great to use the plastic and then use the oil within again.

Got a big pile of plastic waste? Back in 2009 JBI engaged IsleChem, an independent chemical firm providing contract R&D, contract manufacturing and scale-up services to validate the P2O process and provide engineering support so that JBI could apply for an Air Permit for the Niagara Falls Facility. IsleChem performed more than 60 small-scale runs of various types of multicolored, mixed plastic feedstock. After analyzing the energy consumption, residue, off-gas, and material balance, IsleChem determined that our P2O process is repeatable and scalable.

Contact info is on the JBL website at http://plastic2oil.com. Better get in line.

http://newenergyandfuel.com/http:/newenergyandfuel/com/2011/08/11/plastic-recycled-back-to-oil-jumpstarts/


Tuesday, August 9, 2011

triplepundit.com comments on JBI's P2O contract with Rock-Tenn Co.


JBI, Inc., developer of a patent pending Plastic2Oil ‘plastic-to-oil’ technology, will be converting waste plastic by-product from a Rock-Tenn Co. mill into diesel, gasoline and off-gas products, including methane, ethane, butane and propane, according to an exclusive, 10-year agreement.

Plastic2Oil processors will convert waste plastic at Rock-Tenn paper mills and Materials Recovery Facilities (MRF) into a “near diesel fuel”- diesel combined with lighter fractions of gasoline – as well as “mine” and process plastic from RockTenn’s plastic-filled monofill sites. Financial and other details of the contract were not disclosed.

Plastic2Oil’s patent-pending process converts nearly 90% of the hydrocarbons in reclaimed plastics into liquid fuel, according to JBI. Eight percent is converted into an off-gas that is used to fuel the process itself. The remaining 2% residue has been certified safe for landfill disposal, but subsequent testing found that it has a heating value of 10,600 BTU/lb.

Thousands of pounds of waste plastic are produced at Rock-Tenn’s paper mills and MRFs each day. The company has been storing this waste material by-product for several years. JBI management is focusing on getting the Plastic2Oil technology up and running at MRFs and mills given the ready availability of vast quantities of process feedstock.
Founder John Bordynuik and his team have been continually improving the Plastic2Oil conversion process and equipment since 2009 when Bordynuik began developing it with a laboratory desktop unit.

Today, the Plastic2Oil process produces approximately one liter of liquid fuel from each kilogram of waste plastic. An 1,800 pound load of waste plastic takes less than 1 hour to process and requires “non-contact” water and minimal electricity as the off-gas produced is used to power the process. The company has scaled the process up and is now working with 30-ton units.

“We are honored that RockTenn has chosen JBI to be its long-term partner in this venture and believe this provides further validation that we have a viable commercial process to handle not only the critical issue of waste by-product but also rising energy costs,” Bordynuik stated.

“RockTenn has the industrial relationship and feedstock to support hundreds of Plastic2Oil processors. We anticipate a mutually beneficial relationship for both parties and intend to expand as quickly as possible.

“RockTenn currently has sites that can support clusters of processors. In preparation for this agreement, we have designed our processors to be modular ‘plug and play’ to allow rapid deployment across RockTenn’s locations.”

http://www.triplepundit.com/2011/08/plastic2oil-waste-plastic-fuel
/

Friday, August 5, 2011

stocker11 sends special thanks and congratulations to the JBII team and all its supporters

This will be my only post today and I wanted to use it to thank John and the entire team at JBI for bringing this technology to market at such an incredible speed. From a table top model to a 20-30 ton, fully permitted, processor is not an easy accomplishment in such a short period of time.

You'll remember initially that they intended only to make oil for the refinery but as they progressed they saw way past that to where they can now produce nearly any type of fuel in-line. That foresight and the technology around it are incredible. JBI’s processor is far ahead of any competitor and it will take years for them to catch up as they will have to work around pending patents (although the catalyst is the real game changer).

The entire team worked tirelessly through all the obstacles and roadblocks set up by those not wanting them to succeed.

I do not know the entire JBI team but I need to thank those in the local office – the team there is incredible – their perseverance and dedication needs to be commended:

John Bordynuik, Dr. Jacob Smith, Bob Molodynia, Ron Kurp, Allan Barnett, Katie Matkowski, Christine Merrick, Allan Barnett, Brian Seburn, Colin Robbins, Nathan Dobbins and others I have not had the pleasure of meeting yet.

The agreement with Rock-Tenn did not just happen overnight – it took months and months of hard work to strike that first major deal. Others will come more easily now but the next stage (full scale operations) will be equally challenging.

This is just the beginning of what is to come. A number of shareholders have provided their assistance with both monetary support and providing help whenever they could – you too are to be commended and please continue.

Who would have thought that a message board would have such a major influence on shareholder – the followers are now at 689 and I expect it will 10 times that very soon. There are many here that have fought a tough battle over the past 2 years abd I think we all need to thank the core group of supporters from the beginning Rawnoc, Brig88, 4kids9pets, Justice37, Zardiw, Paula - there are so many more.

Special thanks to Islechem for their assistance in making scale-up a reality.

This is a very special company – they will make a difference. They will be helping remove non-biodegradable waste plastic from our landfill and oceans. Their processor is virtually emissions free (no scrubbers needed)and the resulting fuel will replace at least some of the high sulphur, high polluting fuel currently on the market.

Thursday, August 4, 2011

JBII Deal with RKT (NYSE)!!


On July 29, 2011, JBI, Inc. (“JBI” or the “Company”) and RockTenn Company (“RockTenn”) entered into a Master Revenue Sharing Agreement (the ‘Agreement”) for a ten (10) year term with an automatic 5 year renewal term.

In accordance with the terms and provisions of the Agreement, JBI has an exclusive 10-year license to the following:
1. Build and operate Plastic2Oil processors at RockTenn facilities.
2. Process RockTenn's waste plastic from paper mills and material recovery facilities (MRF).
3. Mine and process plastic feedstock from plastic-filled monofill sites.
4. Monofill sites contain years of waste plastic from mills.
5. Waste plastic from RockTenn facilities exceeds thousands of tons per day.

The foregoing description of the Agreement is not intended to be complete and is qualified in its entirety by the complete text of the Agreement attached as an exhibit to this Current Report on Form 8-K.


z

Wednesday, August 3, 2011

The Imperial Whazoo Speaks The Truth

Bingo. To the key point, mam.

See, JBII does not need, much less want, VC types frolicking around with any degree of control over the company. Frankly, it is amazing to me that people have failed to appreciate the degree to which JB has succeeded in keeping outside control of that type from gaining any kind of toe-hold.

And here's a thought for you: maybe the piling on of bottom feeding type of law firms is evidence that the outside parties are looking for some kind of avenue to insinuate themselves into the control room of the company. They were denied entrance by JB, deliberately, and they resort to indirection as their tactic of choice to punish this little company and its brilliant leader for having had the audacity to kick against the prods.

Look at it like there are parties out there who do not want ordinary people to attain freedom from control mechanisms like the control over our everyday lives the oil companies & OPEC currently possess.

Along comes the guy who shows the world that there is a way to turn the plastic that comes from oil back into usable oil products. If these powers-that-be can continue to control the input of oil into all the world's economies, then they control our everyday activities thru the by-products of the oil they monopolistically control: gasoline, diesel, fuel oil, & so forth.

If they could have insinuated themselves by the innocuous looking avenue of VC style investors who were to some degree beholden to the ongoing unsatisfactory worldwide status quo (under the guise of being only interested in generating an income stream from their venture capital), they could have hoped to begin gradually absorbing the company and its tecnology. A logical plan to have anticipated would have been for them to cyclically put more and more into the company and to eventully have control so they could force the sale of the company to one of the entities who does not want it to become a force for good in the world. Then, that entity could simply "disappear" the technology, and control over the world's economies could have continued unimpeded. JB would have been made a very rich man, they would own the technology, and the benefits to the world as a whole would be "disappeared".

So, it seems to me that it is no coincidence that JBII did not let VC types become the financiers of the company and the next event on the event horizon, after the DEC granted them their license to operate, was a cluster of pestering lawsuits.

I just see it as the strategy of those who want this technology to fail to deliver. There are powers out there who can not allow an escape hatch to come into existence that would allow those they control to have some freedom. I think that, having not been allowed to gain a toe-hold by VC activities, the anti-P2O interests are resorting to the tactic of these lawsuits to stop the economic blitzkrieg the ability to process the plastic and turn it into fuel products represents.

Now, in that the company has the DEC license to go forward, and in that they have interested parties who have stepped forward as either host sites for the processors or buyers of the output, I do not think these parties can prevent JBII from reporting around Aug 15th and they can not stop the release of good deal news. I think these kinds of things will force the price back up from here.

I see a battle in place, but the license and the sales and the interested parties and the governmental advocates (mayors, state senators, ond so on) make me think that JBII is not at the mercy of the huge outside parties who want this technology to disappear, unused.

Watch for more news and watch for timely SEC filings, which are coming out soon. They will revitalize the buzz, IMHO. There are battles that will take place but JBII is not without weaponry.

Thats my view, anyway.

Imperial Whazoo