Plastic2Oil Inc (PTOI)

[Arthur Edward Whoof]

On the basis of plastic I believe that the RockTenn situation is troubling because RockTenn is a recycling company. If they can not get the plastic out of their waste stream at a profit it certainly will not be possible for JBI to utilize this waste stream to make fuel at a profit.

If the plastic can go in a JBI machine it can be recycled.

There is no condition that a stream of plastic fit for a JBI machine could not be recycled.

The problems that prevent a stream of plastic from being recycled are the same problems that prevent it from being used by JBI.

If it can be recycled, or used by JBI, it can fetch more money on the recycle market that it can being made into fuel.

The time, cost and effort would be better spent reclaiming the plastic to sell to a recycler and if that cost is great than the market price for that recycled plastic it is even greater than the value of the fuel that can be made.

The more problematic issue with the RockTenn deal is from a business side.

JBI must pay for this deal upfront. JBI is financially responsible for this deal and all aspects of it. The probability of recouping the initial investment is very low here and the probability of loosing money on this deal is very high imo. As long as JBI is holding the bag on this deal and RockTenn has minimal skin in the game its a losing proposition.

When the machines break, who pays to fix them JBI?
Who is responsible for the equipment necessary to reclaim the RockTenn plastic, JBI?
Who pays the fines or pays to resolve the issues with processing the plastic results in an issues regarding accidentally creating unwanted compounds that can be problematic to the environment, JBI? (the JBI machines are not equipped to handle common contaminates)

The RockTenn deal leaves JBI open ended on expenses and short on potential gains. This deal is simply another R&D experiment that JBI is paying for.