There are several persistent questions that I have read on here-
1. Why aren’t they running the two existing reactors to full potential?
2. Why aren’t there substantial sales of fuel?
3. Why is JBI spending $1mill per month with perhaps negligible success in 4 yrs?
4. Why do so many people seem to think there are misrepresentations by the co.?
5. Why hasn’t there been substantial environmentally funded support?
6. Why would the company even need to raise money if it has sound technology?
7. Can this be done at $10 a barrel?
I’m sure there are more questions but I think this is a good start.
Next there are some ‘hidden’ points that I believe are relevant even if no one on here really understands the technical process-
1. What do we do about P2O synthetic fuel oxidation?
2. What does a catalyst really do?
3. How much added cost is there when using a catalyst?
4. Why can’t you use all types of plastic since they are all made of hydrocarbons?
5. What are the variables of fuel output based on plastic input variables?
6. Who are the current ‘players’ in the scrap/recycled plastic market?
7. What is the current market price of good useable plastic?
8. Who are the ‘powers that be’ that have motive to prevent this technology & why?
From these points I can tell you that there are a number of substantial factors that weigh heavily against the commercial viability of this company. Couple that with an obvious misguided lust for flamboyant PR and you create a monster. What I mean by that is that an overzealous tinkerer has painted a best case scenario full of false assumptions contrived from generalized impressions of fact. He then prematurely shouted it from the rooftops and developed a base of followers. He himself may have believed his original numbers but if/upon learning that the realistic picture is much different than his far reaching assumptions, it was too late to correct the public’s misguided perception.
This takes me to the most important question that someone has posted-
P2O, concept or business?
I know there is a sentiment of comfort that is fostered in the alleged RockTenn agreement, however, I fail to see how this arrangement makes financial sense.
The problem her is that RockTenn has a well established and long standing profitable recycling operation in place. They deal scrap plastic and strive to maximize profits from it. The obvious problem here is that the exact same types of plastic that JBI needs has a current market in place that pays well for it. If you were RockTenn it simply doesn’t make financial sense to redirect a profitable product in the direction of a less profitable option without at least equal compensation.
This also exposes the original BIG misconception of $10 a barrel based on FREE plastic.
The secondary misconception here is that plastic is free because it goes in landfills by the megatons. This is partially true. Plastic is wasted and ends up in landfills. There is a financially sound reason for this… it is not economically feasible to separate and recover it. I have had lengthy candid discussions with numerous waste management companies and they all agree that there is great value in the plastic going into landfills and that this plastic can fetch $500-$1000 a ton in the scrap plastic market. The problem is that it costs $500-$1000 to separate, sort and grind it. Until there is a financial motivation to do this, it is not going to happen.
Here lies the next significant factor- Government/environmental funding/subsidies for recycling. A few years back there were a number of programs created to promote and encourage recycling. Plastic recycling companies popped up overnight. The recycling of plastic was made financially viable due to these subsidies, but in turn this helped to drive the price of scrap plastic up… over double the pre-recycling initiative price. This hurts JBI in 2 ways… first the price of feedstock is higher, and second, by the initiatives definition, P2O is not considered ‘recycling’.
Let me leave you with two additional points to consider-
1. What do you think the all powerful oil companies position is on this matter… they currently make money supporting the recycling of plastic to make plastic, they lose money if a JBI P2O company makes fuel… they are not about to give an inch unless it benefits them…. In the current state of affairs, it doesn’t. (I know there will be a number of shoot from the hip comments on this, but spend a little time on this first and you will see that there is a cartel like concerted effort at play here… and you really don’t believe for a second that the gov and oil companies really care a bit about the environment or solving the plastic waste problem… do you?).
2. If you have a chicken that lays golden eggs… show me the money, er, I mean… oil.
