Plastic2Oil Inc (PTOI)

[Arthur Edward Whoof]

Please explain how plastic destined for a land fill is worth more than it's weight in oil?

Simple, if plastic was able to be sorted from the rest of the landfill waste it could be sold on the recycle market.

The value of the plastic on the recycle market is greater than the value of the oil that can me made from it.

It took oil to make it which also has a value greater than the discounted oil sale that JBI could make.

The oil was then turned into plastic which added value.

This makes the plastic worth even more than the oil it was made from.

This makes it even more valuable than the the discounted oil that JBI could sell.

If it was possible to recover the landfill plastic for an overhead cost that would allow it to be sold on the recycle market... it would be.

The price of plastic on the recycle market is higher than the price of the oil that JBI can make.

Since no one can recover the landfill bound plastic to sell it for more on the recycle market... how is it possible to recover it economically to be put in a JBI processor???

If it could be done economically it would be better to recycle it than turn it into oil since it would fetch a higher price than turning it into oil.

Since it can not be done for recycling purposes...

It can be done for P2O purposes either.


http://www.plasticsnews.com/resin/recycled-plastics/current-pricing

Plastic on the recycle market sells for .31-.98 per pound

That is $620 - $1960 per ton

That is an average of $1290 per ton

Currently, the best possible price JBI could sell the oil made from a tons worth of plastic is $600


If they found a perfect scenario of a continuous stream of LLPDE that they could put right in the machine and make oil from it... They would lose $20 per ton (not to mention overhead and $54,000,000 so far spent) vs doing nothing to it but sell it on the recycle market.


The problem remains-

If you can sort the plastic from a waste stream so it can be put into a JBI machine to make oil...

You can sell that plastic for more on the recycle market.

In order to sort the plastic from a waste stream it cost the best recyclers a minimum of $600 to do it.

If JBI got good at it and could also sort plastic from a waste stream for $600 per ton... They could not make a dime off of the oil they could make from it since the sell price equals the cost to sort the plastic.

To answer your question more simply-

The cost to sort a stream of plastic headed to a landfill is HIGHER than the value of the oil that you can make from it.

If you can sort plastic headed to a landfill for cheaper than the experienced and well versed recycling industry can, then you have plastic that is worth MORE than the oil you can make from it.