Tuesday, January 31, 2012

JBI, Inc. has partnered with NYSE RockTenn



January 31, 2012 05:31 PM Eastern Time

RockTenn Continues to Grow and Invest in Automated Sorting Capabilities for Recycled Materials

NORCROSS, Ga.--(BUSINESS WIRE)--RockTenn (NYSE: RKT) announced today the opening of a new single-stream recycling facility in Memphis, TN, expanding the Company’s recycling capabilities and increasing its presence and service capabilities.

“We are investing in new facilities across the country to support demand and provide full-service solutions through innovative technology. Our growth is focused on making recycling easy by increasing our single-stream capabilities and supporting our customers’ sustainability initiatives across the country”.

The new 150,000 square-foot facility will complement RockTenn’s established single-stream recycling plants in Chattanooga and Knoxville. The automated, single-stream system allows designated recyclable materials to be fully commingled during collection instead of separated into different bins, a process that offers significant benefits to homes and businesses.

The opening of the Memphis plant, as the first single-stream facility in the city’s metropolitan area, represents a key investment in RockTenn’s Recycling and Waste Solutions growth plan. This is RockTenn’s ninth single-stream system within its thirty-nine recycling facilities. The Company will continue to expand its recycling powers nationwide in the upcoming year in order to reinforce its commitment to provide easy recycling solutions to better serve customers worldwide.

“We are investing in new facilities across the country to support demand and provide full-service solutions through innovative technology. Our growth is focused on making recycling easy by increasing our single-stream capabilities and supporting our customers’ sustainability initiatives across the country,” said Mike Oswald, senior vice president and general manager, RockTenn Recycling and Waste Solutions.

RockTenn’s 39 Recycling and Waste Solutions facilities partner with vendors across the United States to provide innovative ways to recycle items that are not mainstream. The Company’s Recycling and Waste Solutions employees are dedicated to managing waste streams, recovering recyclables and finding new life for old items, in addition to educating companies and communities about the importance of recycling and reducing the amount of materials that enter landfills.

Follow RockTenn to learn the latest news for Recycling and Waste Solutions.

Facebook: https://www.facebook.com/pages/RockTenn-Recycling-and-Waste-Solutions/194274830624248

LinkedIn: http://www.linkedin.com/company/rock-tenn-company

About RockTenn

RockTenn (NYSE:RKT) is one of North America's leading integrated manufacturers of corrugated and consumer packaging and recycling solutions, with net sales of $10 billion. RockTenn's 26,000 employees are committed to exceeding their customers' expectations - every time. The Company operates locations in the United States, Canada, Mexico, Chile, Argentina and China. For more information, visit

RockTenn’s Recycling and Waste Solutions business is one of the largest recycling operations in the world, processing more than nine million tons annually. With 39 facilities in North America processing various grades of papers, plastics, metals and more, and services both large and small companies, RockTenn provides custom programs to reduce waste, minimize costs and support sustainability goals.

Contacts

RockTenn
Media Contact:
Corina Taylor, 314-656-5490
or
Investor Relations Contact:
John Stakel, 678-291-7900

Seekingalpha.com article discusses JBI's Plastic2Oil technology

John Bordynuik's Plastic2Oil: A Long And Winding Road

There's been a lot of controversy about JBI Inc. (JBII.PK). Some hate it, some love it...there doesn't seem to be any middle ground. And if you visit the stock message boards, that becomes abundantly clear. The night and day polarity is baffling.

JBI claims the ability to convert waste plastic into end-user fuels at a prodigious rate using a catalyst and a process called pyrolysis. Detractors say their claims are invalid and P2O doesn't work.

The company went public in April 2009 when the CEO, John Bordynuik, bought 40M shares (64% of the OS) of 310 Holdings Inc. At that time Mr. Bordynuik, a collaborative researcher for MIT (Bloomberg Bio), owned a legacy computer tape recovery company that NASA had sole-sourced (NASA Document) to recover data from their old satellite tapes. This company was immediately merged into the public company. Mr. Bordynuik then started developing his Plastic2Oil (P2O) process using a catalyst he had found on one of the many old tapes he had purchased from various universities.

The company has been able to validate Plastic2Oil using independent labs. They have also obtained a commercial production permit from the NY Department of Environmental Control.

As far as actually being able to produce fuel and sell it, they entered into a 10 year contract with Rock-Tenn (NYSE:RKT) to process their plastic waste, and are selling fuel to a number of customers, one of them being Oxy Vinyl Canada, a subsidiary of Occidental Petroleum (OXY).

It's been a long and winding road for JBI Inc, and that road has recently turned rocky.

In July, 2011 the SEC issued a Wells Notice alleging an asset misstatement of $10M worth of media credits in 2009. Negotiations for settlement between the company and the SEC failed to bear fruit (JBII Response), and on January 4, 2012, the SEC filed a claim alleging fraud. The stock plunged from 2.35 to a low of .52, but has since recovered to $1.25. (1-26-12).

While these SEC actions are troubling, the jury is still out on the final disposition. Alleging fraud for a misstatement of assets seems like a reach.
The share structure has been relatively stable. At company inception it was 64M OS, and now stands at 72M. That's an 8M increase in 3 years.

Risk/Reward Ratio

It's not easy assessing the R/R ratio for a new company like this. On the one hand they have brought to market breakthrough technology. On the other, the CEO is facing SEC actions.

This company could be on the verge of significant gains. The CEO's credentials are impressive (CEO Bio). Their technology appears to be sound, and converting a never-ending stream of zero cost waste plastic into a valuable commodity is a business model most other companies can only dream about.

Shareholder loyalty is strong, considering the attendance at their first Annual General Meeting: 450 shareholders. This bodes well for long term reward.

Short term risk is mitigated by the share price seeming to have absorbed the effect of the SEC actions. The prospects for long term gain seem to outweigh the risk.

Bottom line: Strong buy for long term gains.

Disclosure: I am long JBII.PK

http://seekingalpha.com/article/327332-john-bordynuik-s-plastic2oil-a-long-and-winding-road?source=yahoo
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Monday, January 30, 2012

Paul Wiseman features JBI's revolutionery technology

Canadian company turns waste plastic into ultra-low-sulphur fuel

By Paul Wiseman
Special to the Oil Report

Over a 10-year period running through the mid-1990s, Canadian entrepreneur John Bordynuik saw the beverage industry switch from glass to non-biodegradable plastic bottles. He saw those bottles littering roads and filling solid waste facilities. He also saw the world’s increasing appetite for fuel, along with concerns about air quality.

Now he is convinced he has found a way to make inroads in all three categories by recycling waste plastic into ultra-low-sulphur fuels and carbon black while creating virtually no emissions.

The process, called Plastic2Oil®, currently uses post-industrial plastic to make a variety of mid-grade fuels, including diesel and heating oil, along with petcoke, also known as carbon black. Basically, the process involves heating the waste plastic in a gas-fired plant to break that plastic down into fuel. Approximately 10-12 percent of the output is in the form of butane, propane and hydrogen, which are used to fuel the fires that make the process work. The plant needs city-supplied natural gas only to start. “I start on natural gas for about the first four hours, then we cut over to our gas,” said Bordynuik. After it reaches a certain temperature, the off-gassed butane and propane are enough to run the plant. Another 1-3 percent is petcoke and the rest is fuel that is basically usable without further processing, Bordynuik stated.

Bordynuik’s company, JBI Inc., made the first processor in 2009.“We got a one-kilogram reactor that was making what I would call a‘spec fuel’ at that time,” he recalled. “That was pretty exciting for us because there had been a lot of attempts to change plastic into some kind of product.” To get a usable form of fuel from it was particularly exciting from a marketing perspective.

“We evolved from a one-kg plant in 2009 to a fully commercial plant now, with permits, and over that time we increased from 1 kg every couple of hours to one ton to 20 tons per day and now to 4,000 pounds per hour in our latest plant, with no emissions,” he continued. This is the equivalent of 100 bbl/day of fuel output. Each pound of fuel contains approximately 10,000 BTUs of energy.

There are so few emissions, said Bordynuik, that plant permitting has been very simple in New York and other places where plants have been installed. In one test, the emissions were found to be cleaner than the air inside the plant. Emissions were tested at 13 ppm NOX, which he called “very, very low” and “basically no carbon dioxide, very little VOCs (volatile organic compounds).” He added that his plant’s emissions are typically about one-fifth those of a standard natural gas furnace.

Permitting is further simplified by the fact that the Plastic2Oil plants operate at atmospheric pressure, making blowouts highly unlikely.

JBI currently has contracts with plastics companies to receive their waste, and with trucking firms and fuel companies to buy the produced fuel. Waste plastic comes to JBI at no cost, which is still a bargain to suppliers because they avoid paying the landfill fees that would otherwise be required. Eventually the company wants to also take post-consumer waste but Bordynuik first sees a huge potential supply of the post-industrial variety.

He notes that the EPA estimates post-consumer waste to be 30 million tons per year. Although there are no estimates on industrial waste plastics, Bordynuik believes it is much higher.

RockTenn, a Georgia-based industrial packaging company that has one of the Plastic2Oil plants on its property, “has enough (waste plastic) to supply us for a long time” at JBI’s current rate of growth. “We also have a plant in Niagara Falls, NY, which is not on RockTenn property,” where, Bordynuik stated, “we bring our own plastic in.” Much of that comes from a nearby meat packing plant, which is one of the largest in the United States.

Each plant is owned and operated by JBI, with just two or three employees required for monitoring of the mostly automated equipment and to fill the inlet hopper with plastic. The plant is 10 feet wide and 120 long.

The process is able to use most plastic as feedstock, with PVC being a major exception because of its low BTU content. Also, the presence of chlorine makes it difficult to maintain the near-zero production emissions goal.

It is not an accident that the Plastic2Oil process is so clean. Bordynuik stated his goal in having it created was to do so with no trade-off-being environmentally sound in just one or two aspects.

Rather than expand too quickly and risk being buried by a resulting mountain of debt, JBI has adopted a pay-as-you-go philosophy other than selling stock. “We are not funded by investment banks,” he asserted. “We want to grow strategically, taking the lowest hanging fruit first.”

JBI has no plants in Texas currently, but RockTenn has some locations in the state, and JBI’s vice president of blending is from Texas, so Bordynuik said he feels his company is likely to establish a footprint in the state before long.

Given the large amount of waste plastic generated by both industry and consumers, Bordynuik believes his process eventually could make a difference in U.S. oil imports. Plus, it could significantly change landfill usage for the better.

Paul Wiseman can be reached at fittoprint@sbcglobal.net.

On the Web: JBI’s very informative website is www.plastic2oil.com.

http://www.mywesttexas.com/business/oil/top_stories/article_63a9fd5e-4b6d-11e1-a32f-0019bb2963f4.html

Friday, January 20, 2012

ReConfirmed: Viability of JBII Plastic2Oil


THOROLD, Ontario, Jan. 20, 2012 (GLOBE NEWSWIRE). After completion of audit and peer reviews of the stack test conducted on December 5-6, 2011 by Conestoga-Rovers & Associates ("CRA") on its Plastic2Oil ("P2O") processor, JBI, Inc. (the "Company") (OTCQB:JBII.PK) has received the final emissions report from CRA. This report further validates the viability of the P2O process and allows the Company to apply to the New York Department of Environmental Conservation ("NYSDEC") for a modification to its Air Permit to run at significantly higher feedstock rates.

In December 2011, three separate stack tests were performed on the existing P2O processor with a pre-melt system. Only unwashed, unsorted waste plastics, including various industrial plastics (buckets & barrels, waste meat packaging, bags, etc.) and gas tanks from scrap cars, were used as feedstock for the test, consistent with the feedstock the processor is currently converting into ultra-clean, ultra-low sulphur fuel.

The three tests were conducted at feed rates of 3,258 lbs/hr, 3,233 lbs/hr and 3,932 lbs/hr, respectively. Ultimately, the test results proved that emissions decreased with increased feed rates. Emissions were considerably reduced through the addition of the pre-melt system (Q3) and more efficient and higher combustion of the off-gas generated by the P2O process.

Residue was not removed from the pre-melt reactor so that the internal walls could be examined. When the reactor was opened, the inside walls were remarkably clean. Two small "tumbleweeds" of clean dense bailing wire bunches were present from processing some paper mill ragger tail waste. Normally, residue and metals would be removed from the pre-melt periodically during operation.

The final report included particulate matter (PM) and hexane testing, both of which showed exceptionally low results.

Comparative emissions results from all of the stack tests performed on the Company's P2O processor were as follows:



"In-spec" end-user fuels produced (Fuel No. 6, Fuel No. 2, and Naphtha) were also tested and verified as ultra-low sulphur, consumer-ready fuel. The conversion ratio for waste plastic into fuel averaged 86%.

"This report is very exciting for the Company as it allows us to apply for a modified Air Permit from the NYSDEC which should enable us to effectively double the capacity of our P2O processor," notes John Bordynuik, CEO and President. "Increasing the feedstock supply rate to almost 4,000 lbs/hr will significantly increase the rate at which we are able to produce fuel from waste plastic."

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Tuesday, January 10, 2012

$2.8M Financing Secured from 13 Investors


THOROLD, Ontario, January 9, 2012 (GLOBE NEWSWIRE) -- JBI, Inc. (the "Company") (OTCQB:JBII.PK) is pleased to announce that it closed agreements on January 6, 2012 for equity financing in the amount of US$2.795 million to build its Plastic2Oil (“P2O”) technology.

Thirteen accredited individuals participated in this recent round of financing, which consisted of units purchased at $1.00 per unit. Each unit included a share of common stock and a warrant to purchase an additional one-half share at an exercise price of US$2.00 at any time for a period of 18 months.

“I think this is further validation of our business model by sophisticated investors who believe in the innovations and proprietary technology that JBI, Inc. has developed,” commented John Bordynuik, CEO of the Company. “This financing will continue to support the operational build-out of our P2O processors at the Company’s Niagara Falls facility and the initial site in our agreement with Rock-Tenn Company.”

The Company believes that this new injection of capital will assist in increasing its production capacity more quickly in order to satisfy the recent fuel distribution agreements made with Indigo Energy Partners, LLC and XTR Energy Company Limited. It is yet another step in the development of the Company as it executes its vision of becoming a vertically integrated plastic recycling, fuel processing and fuel distribution company.

For more information on the details of this recent financing, please refer to the Company’s Current Report on Form 8-K file on January 6, 2012 and posted on the Company’s website at: www.plastic2oil.com.

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Saturday, January 7, 2012

JBI. Inc. Will Vigorously Defend SEC Lawsuit

Falls businessman vows to ‘vigorously’ defend against suit
By Dan Dakin Niagara Falls Review

A Niagara Falls businessman who is facing allegations by the U.S. Securities and Exchange Commission says his company will be just fine.

John Bordynuik's company, JBI, Inc., discovered a way to efficiently produce fuel from recycled plastic and has been refining what it calls its Plastic2Oil process over the past three years. The headquarters of the publicly traded company are in Allanport while its processing plant is in Niagara Falls, N.Y.

The SEC announced this week it has filed an action in U.S. federal court against Bordynuik, the chief executive officer, along with Ronald Baldwin Jr., the former chief financial officer — accusing them of "engaging in a scheme to commit securities and accounting fraud."

The allegations go back to the second half of 2009, when the SEC says JBI overstated certain company assets to make itself look more successful than it was as it tried to raise private capital money.

The $8.4 million raised was then used to get their Niagara Falls, N.Y., operation, where recycled material is converted to sellable fuel, off the ground.

The SEC allegations say after that money was raised, JBI issued a public statement saying its financial statements couldn't be relied upon, partially because of errors on its balance sheet.

The securities commission says Bordynuik and Baldwin Jr, a resident of Palm Harbor, Fla., were either aware that their 2009 filings violated federal securities law, or were reckless in making the filings.

After the SEC announcement, JBI issued a statement to the media saying: "We believe that JBI, Inc. acted in good faith in correcting the legacy accounting issues in question … we regret that our attempts to negotiate settlement of the dispute have failed. At this point, I can only say that we look forward to vigorously defending the suit."

On Friday, Bordynuik expanded on that, saying the lawsuit isn't much of a concern.

"In 2009 we were a very small company and we had an accounting department of one," he said.

"The issue is around a single item on a 2009 accounting statement. I think you'd be hard-pressed to find a judge that would kill this for that."

On Friday, two days after the announcement, it was business as usual at JBI.

Set up in an old industrial park about five kilometres from the Rainbow Bridge, the company is located in a relatively small building that is surrounded by fencing.

At an entrance gate, an off-duty Buffalo police officer kept guard — keeping prying eyes away from what Bordynuik says is proprietary technology.

"We take (security) very seriously. This is proven technology. It's unquestionable. There hasn't been a viable alternative energy company," he said.

Since launching three years ago, JBI has refined a process where plastic packaging is broken down and turned into fuel.

The raw material is given to them from companies that typically would have to pay big money to dispose of it and then the end product is a fuel that can be sold to a wide variety of companies.

Bordynuik first built a one-kilogram processor to prove his conversion technology worked. That was then used as a model to build a one-ton test processor, and then the 20-ton commercial unit now in full operation in Niagara Falls, N.Y.

The company has about 100 employees in Canada and the U.S.

"A lot of people thought this was like what was already out there. There are other companies, but they don't have a final product like we do," said Bob Molodynia, the company's vice president of business development.

Molodynia, also of Niagara Falls, Ont., said only about 7% of all plastic waste gets recycled.

From the plastic JBI processes, 90% is converted into sellable fuel and 8% is gas that's used to power the company's processing machines, which can produce up to 109 barrels of fuel per day.

While much of the final product is sold as oil for commercial companies, JBI now has a licence to produce a clean fuel for transportation use. On Dec. 23, it announced a deal to provide Canadian XTR Energy stations with both gasoline and diesel.

The SEC action this week resulted in JBI's stock plummeting from $2.35 Wednesday morning to 54 cents 24 hours later, though it had recovered to $1.42 by the time markets closed Friday.

http://www.niagarafallsreview.ca/ArticleDisplay.aspx?e=3428015

ddakin@nfreview.com
Twitter: @dandakinreview
With files from the Niagara Gazette