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Re: Estimated_Prophet post# 155812

Wednesday, 01/11/2012 2:36:40 PM

Wednesday, January 11, 2012 2:36:40 PM

Post# of 312015
EP: adman asked "Has it been posted specifically anywhere how much fuel has been contracted to be bought?" and you answered "They sounded big"

I don't think there is any legal obligation for XTR to buy the fuel. I think it will be in XTR's best interest to buy the fuel for a number of reasons, possibly including price. I believe they have tested the fuel and found it meets, and probably exceeds, their requirements for quality.

I think XTR will buy as much as JBII can provide. I think that, at first, JBII will not be able to provide XTR's minimum quantity requirements on a consistent basis and JBII will need to buy third-party fuel to blend with their own until they are able to guarantee those quantities.

XTR has a market for the fuel and they want JBII's fuel. That's a good thing.

It is up to JBII to determine how much they can make available to XTR. That will require consistent feedstock supplies, another factor that makes it so JBII cannot guarantee quantities from P2O yet.

JBII is just starting. It will take a few years for each site they establish to develop a consistent flow of feedstock and output. They will need to supplement P2O fuel with other fuels to guarantee consistent quantities for customers buying the fuel. The more consistent the plastic feedstock supplies, the less JBII will have to rely on third-party fuels.

And the greater the corporate profits will be.

Just supposin'

techisbest