Here is the second part of Mr. Bordynuik's update
Post# of 43064
Posted On: 05/18/2014 12:53:14 PM
Here is the second part of Mr. Bordynuik's update on the status of the processors during the December 2013 AGM.
Machines Off-Site:
Internally, we have fully documented processor 3, which is our flagship machine for joint ventures and sales. We have a full set of engineering
prints, and installation prints (engineering drawings). We have completed process flows, and troubleshooting manuals. We have also had to
produce operating manuals and at this time, we are preparing maintenance documentation for third parties. We are supplying due diligence information to prospective buyers and we are gathering and tracking weekly reporting on processor 3 for buyers.
Our team and technology:
We are a technology company, not an operator. There are plenty of companies with decades of experience in wastes, fuels, and operating
equipment and plants. That is why many companies who design and develop processes don’t build and internally operate them. I am very
confident in system 3 and a seasoned 3 rd party would be able to operate our system well.
Competitive Advantage:
Since day one, we were very aware of the problems plaguing other waste plastic into fuel technologies and the fatal barriers they still have to
this day. Our greatest strengths against current competitive technology is:
Challenges Solved in Last Five Months:
1. For example, we have no waste water in our process. Other technologies (where the fuel contacts the water) have waste water
disposal bills of $100,000 or more per month.
2. Another significant problem that other technologies have is residue that cannot pass TCLP testing and therefore is considered
hazardous waste. The competitors are still plagued with that problem today. Our catalyst and process ensures the residue is inert
and safe for the environment.
3. Fuel output quality is also a significant problem. Halides like chlorine and bromine in fuels render the syn-crude or random
hydrocarbon mash fuel nearly worthless. Halides can be as high as 800 ppm in competitive technologies without catalysts. Our
fuels were tested for halides and no halides were found. We do not sell to small refineries, we sell to large customers with significant
fuel quality requirements, layers of government regulations, and the need for halide free, high flash point, in spec fuels.
1. Residue comes out 1-4 barrels every 12 hours consistently every shift, depending again on the fillers in the feedstock. The product is
uniform, much better than before, and we knocked it out of the park from a solutions standpoint. To date, we have removed
367 barrels of residue from Processor 3.
2. We have amassed significant data from Processor 3 that allowed us to adjust the heating distribution across the machine, the cooling
demands and flows into a steady state.
3. New catalyst into Processor 3 and it is functioning well and a liquefied version will be complete soon. The new catalyst was
discussed in detail in my ASME published paper “Viable Production of Diesel from Non-Recyclable Waste Plastics.” I recommend
those listening today who are new to the Company today to read that paper to better understand the technology and the evolution of
this Company.
4. The support equipment for the system has worked flawlessly.
5. The high cost feedstock and those practices have been eliminated from the Company.
Challenges Remaining & How We are Mitigating Those Risks:
6. Fabrication Team When Rick Heddle came onboard, he set up our fabrication in a manner that he has experience with from his
prior business ventures. The team has executed very difficult tasks, very quickly, without error. Their work has been significantly better than this site has ever seen. The new policies, methods and structure implemented have improved the quality of work as a whole by the fabrication department.
7. Material handlers and feed stock quality Our material handlers have been trained. They are very good at spotting any material
that is not right. We built testing procedures on site for them to be able to test and reject any plastic loads.
For example, the old feedstock we received before the transition in August, was 50% rejected at the hopper. We are now at 95% acceptance. Going through these challenges have built a very robust frontline team who know what to look for, how to test the plastic and waste oil, and how to stop any problematic feedstock before it gets near the hopper.
1. Inexpensive HTF We are being very careful what vendors/suppliers we take HTF from. We believe we have covered most
possible inert fillers, however, we are in the infancy of this and therefore, despite the fact that we tried to correct high cost of goods
caused from extremely expensive feedstock from Q1 and Q2 of 2013, we will not be risking the uptime any further to acquire ultracheap
HTF. Instead, we will focus on reasonable HTF at a much lower price around $1.00-$1.30 per gallon and not risk new sources
until we have infrastructure in place to flag possible unknowns.
2. Staffing We are seeking and hiring experienced engineers and chemical operators. We currently have half the staff we had
before, doing double the amount of work. We are putting together training materials and hiring the appropriate people to run our
processors. We need trained JBI employees to be able to train staff and startup processors in remote locations in the future. They
need to be fully trained here in Niagara Falls, NY to be able to do so in the future. We need more staff for this purpose.
3. Winter The plant environment is different from the very hot summer to the cold winter. While we have things in place to stop
pipe freezing and cold areas, in cases, cold related issues can rear its ugly head when least expected. It is a challenge when dealing
with low temperatures and high wind lake effects. We are being vigilant to correct any issues that arise.
4. Recycling Recycling is a dirty business! Suppliers, brokers, MRF’s, are all looking at a way to maximize their recyclables and
get rid of their waste.. free. Because we are interested in the non-recyclables, our challenge is always being on the defensive trying
to stop a large bolt, a skid piece of wood, a large spoon, a baseball bat, or some other large object of that kind from getting into the
processor. We are continuing to work with new large feedstock sources and be continue to be vigilant even with the most trusted
sources.
SUMMARY:
Fortunately, we have relationships with large engineering firms that have had the advantage of reviewing other competitive systems and have
in turn validated ours. We learned a lot from these firms and were reassured at various stages in our evolution that simply “you don’t know
what you don’t know.” What I mean by this is when you have a new technology that hasn’t been done before, you don’t know always what
issues are left until you’ve removed any in your way. This is a new technology that has been put through a very fast evolution from a 1 gallon desktop reactor to a massive, high volume, waste plastic to fuel production plant. With our current permit of 4,000 lbs/hr, my goal is to achieve 3,000 lbs/hr or 36T/day on average on System 3. We have overcome growing pains in all areas of the business and become a stronger, more adaptable company because of it. We believe this experience will be very beneficial to our future partners. We worked through these challenges and we will continue to work towards our goals.
Like you, I am a major shareholder in this company and have a significant vested interest in making this company a success.
Machines Off-Site:
Internally, we have fully documented processor 3, which is our flagship machine for joint ventures and sales. We have a full set of engineering
prints, and installation prints (engineering drawings). We have completed process flows, and troubleshooting manuals. We have also had to
produce operating manuals and at this time, we are preparing maintenance documentation for third parties. We are supplying due diligence information to prospective buyers and we are gathering and tracking weekly reporting on processor 3 for buyers.
Our team and technology:
We are a technology company, not an operator. There are plenty of companies with decades of experience in wastes, fuels, and operating
equipment and plants. That is why many companies who design and develop processes don’t build and internally operate them. I am very
confident in system 3 and a seasoned 3 rd party would be able to operate our system well.
Competitive Advantage:
Since day one, we were very aware of the problems plaguing other waste plastic into fuel technologies and the fatal barriers they still have to
this day. Our greatest strengths against current competitive technology is:
Challenges Solved in Last Five Months:
1. For example, we have no waste water in our process. Other technologies (where the fuel contacts the water) have waste water
disposal bills of $100,000 or more per month.
2. Another significant problem that other technologies have is residue that cannot pass TCLP testing and therefore is considered
hazardous waste. The competitors are still plagued with that problem today. Our catalyst and process ensures the residue is inert
and safe for the environment.
3. Fuel output quality is also a significant problem. Halides like chlorine and bromine in fuels render the syn-crude or random
hydrocarbon mash fuel nearly worthless. Halides can be as high as 800 ppm in competitive technologies without catalysts. Our
fuels were tested for halides and no halides were found. We do not sell to small refineries, we sell to large customers with significant
fuel quality requirements, layers of government regulations, and the need for halide free, high flash point, in spec fuels.
1. Residue comes out 1-4 barrels every 12 hours consistently every shift, depending again on the fillers in the feedstock. The product is
uniform, much better than before, and we knocked it out of the park from a solutions standpoint. To date, we have removed
367 barrels of residue from Processor 3.
2. We have amassed significant data from Processor 3 that allowed us to adjust the heating distribution across the machine, the cooling
demands and flows into a steady state.
3. New catalyst into Processor 3 and it is functioning well and a liquefied version will be complete soon. The new catalyst was
discussed in detail in my ASME published paper “Viable Production of Diesel from Non-Recyclable Waste Plastics.” I recommend
those listening today who are new to the Company today to read that paper to better understand the technology and the evolution of
this Company.
4. The support equipment for the system has worked flawlessly.
5. The high cost feedstock and those practices have been eliminated from the Company.
Challenges Remaining & How We are Mitigating Those Risks:
6. Fabrication Team When Rick Heddle came onboard, he set up our fabrication in a manner that he has experience with from his
prior business ventures. The team has executed very difficult tasks, very quickly, without error. Their work has been significantly better than this site has ever seen. The new policies, methods and structure implemented have improved the quality of work as a whole by the fabrication department.
7. Material handlers and feed stock quality Our material handlers have been trained. They are very good at spotting any material
that is not right. We built testing procedures on site for them to be able to test and reject any plastic loads.
For example, the old feedstock we received before the transition in August, was 50% rejected at the hopper. We are now at 95% acceptance. Going through these challenges have built a very robust frontline team who know what to look for, how to test the plastic and waste oil, and how to stop any problematic feedstock before it gets near the hopper.
1. Inexpensive HTF We are being very careful what vendors/suppliers we take HTF from. We believe we have covered most
possible inert fillers, however, we are in the infancy of this and therefore, despite the fact that we tried to correct high cost of goods
caused from extremely expensive feedstock from Q1 and Q2 of 2013, we will not be risking the uptime any further to acquire ultracheap
HTF. Instead, we will focus on reasonable HTF at a much lower price around $1.00-$1.30 per gallon and not risk new sources
until we have infrastructure in place to flag possible unknowns.
2. Staffing We are seeking and hiring experienced engineers and chemical operators. We currently have half the staff we had
before, doing double the amount of work. We are putting together training materials and hiring the appropriate people to run our
processors. We need trained JBI employees to be able to train staff and startup processors in remote locations in the future. They
need to be fully trained here in Niagara Falls, NY to be able to do so in the future. We need more staff for this purpose.
3. Winter The plant environment is different from the very hot summer to the cold winter. While we have things in place to stop
pipe freezing and cold areas, in cases, cold related issues can rear its ugly head when least expected. It is a challenge when dealing
with low temperatures and high wind lake effects. We are being vigilant to correct any issues that arise.
4. Recycling Recycling is a dirty business! Suppliers, brokers, MRF’s, are all looking at a way to maximize their recyclables and
get rid of their waste.. free. Because we are interested in the non-recyclables, our challenge is always being on the defensive trying
to stop a large bolt, a skid piece of wood, a large spoon, a baseball bat, or some other large object of that kind from getting into the
processor. We are continuing to work with new large feedstock sources and be continue to be vigilant even with the most trusted
sources.
SUMMARY:
Fortunately, we have relationships with large engineering firms that have had the advantage of reviewing other competitive systems and have
in turn validated ours. We learned a lot from these firms and were reassured at various stages in our evolution that simply “you don’t know
what you don’t know.” What I mean by this is when you have a new technology that hasn’t been done before, you don’t know always what
issues are left until you’ve removed any in your way. This is a new technology that has been put through a very fast evolution from a 1 gallon desktop reactor to a massive, high volume, waste plastic to fuel production plant. With our current permit of 4,000 lbs/hr, my goal is to achieve 3,000 lbs/hr or 36T/day on average on System 3. We have overcome growing pains in all areas of the business and become a stronger, more adaptable company because of it. We believe this experience will be very beneficial to our future partners. We worked through these challenges and we will continue to work towards our goals.
Like you, I am a major shareholder in this company and have a significant vested interest in making this company a success.
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