Plastic2Oil Inc (PTOI)

[Justice37]

JBI has been working with several companies but there is no JV "yet." and I have no reason to believe their won't be. In a PR a few months ago JBI indicated they were about to sign a referral agreement, later in the same PR they said that a JV would be signed with the same company and one of the companies referred to them. The referral agreement was with Smurfit-Stone (now Rock Tenn) so that would be mean they and one of the companies they referred to JBI would be two possible JV's. There is no reason to believe they will not be a JV. They have more than enough recycling facilities and I'm sure they want to start saving millions on transportation and landfill tipping fees as soon as it is feasible.

I have little understanding of complex negotiations with multi-billion dollar companies, I have a hard enough time negotiating with my kids.

I think some of the challenges will be in working with multiple processors and then working with multiple processors at different sites. I'm sure there are issues that cannot be foreseen until things have been running for a while. I think another challenge will be in producing processors and how to produce them fast enough and install them in a timely manner. I don't see permits as an issue, the partners they are dealing with will already have solid waste permits (the time consuming one) and the air permit should be easier especially when a multi-billion dollar company is applying for one, as long as the processors are similar to what has been and will be accepted in NY State it should be fast (the processor has emissions similar to heating furnaces). If a partner does not want the fuel than JBI would have to find buyers. The more buyers JBI gets for the fuel from the Niagara Falls facility the easier this will be as any disbelieve a potential buyer may have is reduced as more companies get on board with fuel contracts. These are all challenges but none are insurmountable.

Rome wasn't built in a day but once the JV's are signed and few sites are up and running it isn't unreasonable to expect that growth will be quick. I think it's worthwhile to look at some of the plastic to oil only companies in North America that are out there. After seven years one company only has one processor built. Others are waiting or not running to capacity. The only sales of processors are for those that take all waste (other than metal) and help provide fuel for electric generators (like Covanta) where only 33% of the feedstock is turned into bio-diesel and the rest is carbon and dry compact pellets that are later burned to produce the electricity. However, these are different types of technology. JBI have come a long way in two years.