Processor 2 – Modular and Standardized : The second processor was fully assembled from rack modules in approximately 8 weeks. The second
processor was debugged within two weeks of assembly. Remarkably, only two components required replacement during debugging, due to the
fact that these components were deemed non-functional upon arrival. The second processor has been converting plastic at 2000 lbs/hr and
producing fuel since it was initially debugged. The processor does not require further modifications and therefore our focus going forward is to
maximize fuel sales and build more processors.
Uptime : Uptime is the amount of time that a Plastic2Oil processor is fed plastic continuously and is producing fuel. Based on the operational
data of the second processor, we anticipate uptime of the second processor and additional processors to be about 75%.
Operation : Plastic2Oil processors operate as follows:
Maintenance Schedule : The processors require minimal maintenance as there are few moving parts.
As at March 16, 2012, we have not found any issues with the continuous operation of our second processor. We anticipate that our modular
Plastic2Oil processor capital outlay will be in the range of approximately $800,000. We have applied for International Patent Protection for our
Plastic2Oil process in its entirety. Our catalyst and knowhow are being safeguarded as trade secrets, as a measure to ensure their confidentiality.
Feedstock
Our P2O process primarily uses post-commercial and industrial waste plastic that might otherwise be sent to a landfill by the
commercial and industrial producers of such waste plastic. This can be costly due to the large volume of plastic waste that is generated by these
businesses. As such, our business model is premised on our ability to accept waste plastics from such sources at no cost. We believe that our
ability to accept unwashed, mixed waste plastics and metals is a significant advantage of our P2O process compared to similar operations in our
industry.
We receive free waste plastic for our Plastic2Oil processor(s) from Chrysler, General Motors, major food packagers, dairy companies,
agricultural plastics, and many other sources. We are recycling thousands of gas tanks, bales of plastic film and many other free plastics that are
usually sent to landfill. We do not pay for any plastic. None of the plastic that we have received to date at the P2O factory has required sorting.
We continue to receive large supplies of plastic feedstock at both our Niagara Falls, NY and Thorold, Ontario facilities. We also retain a
significant backlog of feedstock.
Fuel Products
The P2O process makes both light and heavy fuel products which are; specifically naphtha, Fuel Oil No 2 and Fuel Oil No 6, as defined
by ASTM International. Our process also generates by-products of an off-gas similar to natural gas and a carbon residue known as petcoke.
Naphtha is a very light fuel product that is used as a cutting component for gasoline in high and regular grade, road certified fuels. Fuel Oil No. 2
is a mid-range fuel commonly known as diesel and can be blended for on-road use or utilized in its raw form for non-transport vehicles,
generators and industrial equipment. Fuel Oil No. 6 is a heavy fuel generally used in industrial boilers and ships. Our process produces high
quality, ultra-low sulphur fuels, without the need for further refinement. This enables us to sell our fuel directly from our P2O processors to the
end-user. Additionally, we own and operate a 250,000 gallon fuel-blending facility in Thorold, Ontario, which allows us to blend and self-certify
certain fuels that are produced from the P2O process to meet government specifications. We are then able to sell these fuels to retail vendors or
end-users as road-grade gasoline or diesel. The Fuel Oil No. 2 and Fuel Oil No.6 are sold without the need for further blending.
The off-gas that is produced by the P2O process is used to fuel the furnace that heats the pre-melt system and P2O processor.
P2O Facilities
We currently have three main facilities that we use in our P2O operations, which are briefly described below. For additional information
on our properties, see Item 2 of this report.
Recycling Facility. We lease an 18,000 square foot recycling facility located on a 9 acre site in Thorold, Ontario. We primarily accept,
separate and process, mixed paper, cardboard and various grades of plastics. The facility houses two balers, nine trailers and a shredder. In
addition, our permit for this facility allows us to store up to 300 metric tons of waste material at any one time. From this facility, we transport
the plastic feedstock to our Niagara Falls plant for processing into fuel. We also sell corrugated cardboard to paper mills.
Niagara Falls Facility. Our Niagara Falls, NY facility is a 10,000 square foot building that currently houses two commercial-scale P2O
processors and various other fabrication equipment and parts relevant to the process. We recently completed construction of a 7,200 square foot
building that will be utilized for expansion of our P2O operations. Our Niagara Falls operations are situated on eight acres which can
accommodate expansion of our growing operations. This facility also serves as our research and development operations.
Fuel Blending Facility. We own a 250,000 gallon capacity fuel blending site in Thorold, Ontario. The fuel-blending site allows us to
· The processor is heated up over an 8-hour period.
· Plastic is fed continuously, 24 hours a day until maintenance is required.
· If the processor must be shut down for maintenance, safety checks, or unforeseen circumstances it is then cooled down over a 16-hour
period.
· Daily : Processor is examined while operating and processing plastic. Parts are lubricated as needed.
· Weekly : Residue is removed from the processor when the system is full. The residue is removed from the processor into barrels through the
infeed system. It is not necessary to cool the system in order to perform residue removal; however plastic cannot be fed during this
approximate 6-hour period.
· Monthly : The processor is cooled down for a monthly safety inspection. This inspection takes approximately 36 hours. Any scheduled
maintenance or planned upgrades to the processor can be performed during this time.
As at March 16, 2012, we have not found any issues with the continuous operation of our second processor. We anticipate that our modular
Plastic2Oil processor capital outlay will be in the range of approximately $800,000. We have applied for International Patent Protection for our
Plastic2Oil process in its entirety. Our catalyst and knowhow are being safeguarded as trade secrets, as a measure to ensure their confidentiality
Market Data 
Markets 
AI
