The XTR Energy agreement will require the Company to purchase third party fuels to blend with its P2O fuel output until it can build out the capacity to meet the full quantities required by the customer.
XTR Energy will be purchasing Regular Transport Gasoline, Premium Transport Gasoline, Diesel Ultra LS Clear and other acceptable road transport products from JBI, Inc. These products are the fuel output of JBI, Inc.’s Plastic2Oil® (“P2O”) process, which will then be blended and made available through the Company’s Blending Site in Thorold, Ontario (“Thorold Terminal”).
“XTR Energy looks forward to acquiring products from JBI, Inc. in Ontario and across Canada. This new relationship is directly aligned with XTR Energy’s strategic objective to have a diversified secure supply of quality petroleum products from a variety of sources to meet the growing demands of the XTR Energy network and preferred customers,” stated Ken Wootton, President of XTR Energy, upon signing the agreement.
“We were attracted to XTR Energy because of their corporate values and distribution reach across much of Canada,” commented John Bordynuik, CEO of JBI, Inc. “They are committed to green alternatives, high operational standards and maintaining long-term winning relationships with both their customers and suppliers.”
The agreement with XTR Energy is a step forward in achieving the Company’s vision of becoming a vertically integrated plastic recycling, fuel processing and fuel distribution company. It allows the Company to utilize the value of one its key assets, the Thorold Terminal, a registered and licensed TSSA fuel blending and distribution facility with fuel storage capacity in excess of 250,000 US gallons
