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Wednesday, March 31, 2010
JBII shareholder "stu" comments on competative advantages of P2O technology
It's not just the higher yield that contributes to the profitability of P2O here.
. yield 10-15% higher = more oil revenue per ton
. speed of processing 20 tons is a couple of hours (lower staff costs / ton)
. footprint of 60m2 vs. 400m2 = lower warehouse rent/cost
. solid waste toxicity means landfillable, no expensive disposal
. net energy used is negative, some competitors require $500/day for power
. accepting PVC and PET means up to 20% more plastic is available
. fuel quality output should fetch a premium
All of these can add up to a single "site" netting over $1m / year more than a competitor's site. Do your own math and you should arrive at roughly the same number.
And the real kicker is the low up-front costs of the processors, vs. $3-5m from competitors. They pay for themselves within weeks.
And actually that's not even the kicker.. it's their entire JV approach which is made possible because the up-front costs are so low, and this will help JBI establish a huge footprint quickly -- something no other competitor can do!
This is going to be an exciting next few months folks. Hold onto your pants (and shares).
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