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Rawnoc

04/26/11 8:01 PM

#103755 RE: TRPL7s #103753

How much do you think it costs to deliver fuel?

The reality is these costs you speak of are almost immaterial per barrel. No special "infrastructure" needs to be created to sell and use fuel.
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Justice37

04/26/11 8:24 PM

#103762 RE: TRPL7s #103753

Municipalities and some large businesses like Waste Management, have their own pumps and probably get fuel from several different sources depending on their needs and physical location (with a large company in different states and provinces) so JBI would change nothing except the price they paid for the fuel. The other thing to understand is that JBI has nothing to do with how the fuel is distributed to vehicles or boilers, they would be told where and when to deliver it, the rest isn't their problem.

As far as how the infrastructure is paid for, if they don't already have it the partner pays for it out of the money they currently budget for transportation, tipping fees, and from savings for the fuel. Howto reported that a single company is going to save $8 million a year on transportation and tipping fees alone, any company having to provide a location for the processor and paying for a way to distribute "cheap" fuel, will do so while doing a happy dance as they count the money they save. As well, in some cases larger companies will be getting 20% of the fuel sales profit. JBI doesn't have to pay for a physical location and gets a steady stream of free and plentiful plastic.

Not understanding this issues with "stations."

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r2g2

04/26/11 8:39 PM

#103768 RE: TRPL7s #103753

It is worth watching the videos of the annual meeting from 2010 on youtube. I think a lot of these questions are answered there.

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Steady_T

04/27/11 12:12 AM

#103791 RE: TRPL7s #103753

That is the point of placing a P2O processor at the facility that produces the waste plastic.

No additional transportation costs for the plastic input over what it already cost the facility to collect the materials into one place at the plant. If the plant uses the resulting fuels there is no transportation costs there either. If the plant doesn't use the fuels, then the fuels is already in transportable form to whatever local buyer wants it.

That's the beauty of the plan. It side step most of the logistical issues.