Global Clean Energy Inc (GCEI)

[OhManIDied]

Quick napkin calculation


http://plastics.americanchemistry.com/Plastics-to-Oil --pg 11

As discussed, fuel yields and production costs will vary based on the nature of the feedstock and labor and energy costs in the region. A general example of yield and production cost is offered below.

One system manufacturer offered the following production yield and cost projections:

One ton of mixed scrap plastic = 264 gallons of consumer-ready fuel
Production costs (if plastic is obtained for free) = $0.75 per gallon

Economic returns are seen in either the sale of the fuel product, or the offset fuel costs if a company uses the fuel internally. When asked about the connection of ROI and the value of crude oil, a number of manufacturers said PTF-derived fuel is competitive to traditionally-derived fuel, even if the price of
crude oil drops to about $40 per barrel.

So assuming these figures would be in the ballpark:

6,000 tons of plastic = 1,584,000 gallons of diesel fuel

Avg. price of diesel as stated by US EIA = $3.81
(assuming $0.75 cost to manufacture each gallon)
The profit of selling the fuel is ~=~ $3.06 per gallon

Therefore, the profit of operating the PTF plant will be around $4,847,040.00 per year
--this is right in line with the previous PR stating $5 million annual revenue run rate

GCEI