WIth a processor at a customer site vs. at JBI, th
Post# of 43064
For fuel, we were told that the fuel met 'specs' which we were to assume meant ASTM specifications and could be sold as a commodity. There's a spot price for everything from real diesel to real fuel oil that meets ASTM. JBI supposedly was already selling those fuels to companies like XTR. They purportedly just loaded up those tanker trucks which they already owned and shipped it. It doesn't seem difficult for JBI.
Contrast that to finding a customer to buy a processor, a customer which generates enough of the right type of clean enough waste plastic at around 20 tons a day or it's not efficient...and that customer also needs to use 109 bbls of fuel per day to avoid needing to sell any to avoid the logistics you mentioned...and Mr. Bordynuik 'wants' to sell two or three of those processors at a time.
For those reasons I don't feel that use of the fuel by a buyer makes a processor purchase better for that buyer than the processor being run by JBI.
"Potentially, the company could collect plastic waste from external sources to increase the value of their operations."
JBI could also collect plastic waste from external sources to make more money in that situation. There's little difference.
"No concern that the plastic supplier will ask for more for their waste stream as the value of that stream is realized."
JBI supposedly has the monopoly on JBI processors and should have the best negotiating power. Hopefully a supplier doesn't have a monopoly on the type of plastic JBI needs or you can see how that would be a different problem.
"No need to deal with the ongoing operations themselves."
Someone has to operate the processor and that operating cost should be virtually identical at JBI or at a company. If you ran a business, all else being equal, you would pay less up front for equipment which costs more to operate. JBI might not have to operate it themselves, but the price a customer is willing to pay to JBI for a processor will be discounted by what that customer will need pay out over time in operating costs--so JBI will have 'paid' for those operating costs either way.