Replies to post #177309 on Plastic2Oil Inc (PTOI)

[NewMoney]

JBI has feedstock expenses. They may not purchase the plastic(yet) - but it's not "free".


True enough I suppose. The guy that shovels the free plastic into the beast probably gets 10 or 12 dollars an hour.

And there's a light bulb in there too.


I stand corrected.

[Rawnoc]

JBII feedstock cost -- $0/ton
JBII electricity cost -- near $0
JBII natural gas cost -- near $0

The Energy Information Administration (EIA) considers feedstock costs to be free. They only use the actual payment used to acquire the feedstock (that is, purchase it from a supplier) in their calculation models and have pegged it to be the single largest cost for other process -- a cost that doesn't even exist for JBII:

"The Energy Information Administration (EIA) uses a process-costing approach to model the impacts of net feedstock production costs plus capital and operating costs. The feedstock cost of the oil or grease is the largest single component of biodiesel production costs."
"The biodiesel production process uses, for each gallon, 0.083 kilowatthours of electricity and 38,300 British thermal units (Btu) of natural gas"
http://www.eia.doe.gov/oiaf/analysispaper/biodiesel

Capital and operating costs are separate from feedstock costs.

Yellow Grease feedstock cost -- $600/ton
White Grease feedstock cost -- $800/ton
Soybean oil feedstock cost -- $1000/ton
Biodiesel energy costs -- High
http://www.ams.usda.gov/mnreports/lswagenergy.pdf

Now take JBII costs:

JBII feedstock cost -- $0/ton
JBII electricity cost -- near $0
JBII natural gas cost -- near $0