When it comes to plastic, you get what you pay for.
If you want contaminated mixed plastic that will foul up your machines and break the set emission standards, sure you can get truckloads at (only) $500 a ton.
If you want good, sorted plastic you will pay at least $750 a ton.
If it (only) takes 8 lbs to make a gallon
and (on the best days) you get 6 US brls/ton
IT WILL COST $125/brl JUST IN PLASTIC!
now add your $10 overhead cost (yeah, right, more like $50mill)
and you are selling $110/brl fuel for a $25 loss!!!
This math is not double dipping, or accounting for ANY other issues previously pointed out AND it is the BEST CASE SCENARIO
(meaning min price for good sorted plastic, max yield for the process, round UP to make it juicier, minimum overhead cost, and at a sell price of $110/brl which is NOT what a WHOLESALE buyer would pay btw).
And if I was RockTenn why on earth would I put plastic in a machine (that holds no IP advantage for my business model and could make me the target of an infringement lawsuit) to turn it into anything.... and lose time and money.... when I could sell the plastic on the open market for more and do nothing to it?
Just an added point to all of the other problems....
Landfill plastic cost time and money to extract it,
once its extracted it has more value as plastic than it has turning it into oil.
When you are permitted to ONLY use landfill plastic and you can ONLY put half of the landfill plastic in the machine or you create toxins and deadly corrosive gasses that will rust and foul up your machine and break emission regulations... then you have more problems.
Once you extract HALF of the landfill plastic that you can use, what do you do with the other half? Pay to put it in a landfill (ANOTHER UNMENTIONED ADDED COST) and if you actually started doing this on a regular basis or somehow managed to run at maximum capacity, in a years time you will have dumped over 100,000 tons of UNUSABLE plastic into a landfill! (that would put you on the map as one of the biggest plastic contributors to negative environmental impact in the state of NY if not the country)
I have not seen or heard of ANY plastic processing equipment or methods mentioned for JBI... if they were doing this it would be a good idea to let them know that they could qualify for recycling status if they sold the plastic that they separated... and between the break even cost of doing this and the recycling subsides they could get they might just make a buck or two... oh, that's right, that would get used to pay for the dumping license they would need to get rid of that much BAD plastic that they don't use!
In the end it will become obvious why making oil for only $10 a brl on a commercial level is a misguided fraud...
and after 4 years and $50mill it should have become even more obvious that... IT IS A LIE.
Good plastic is not FREE
FREE plastic is not good!
