PTOI is only allowed to use HDPE, LDPE and PP plas
Post# of 43064
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PTOI is only allowed to use HDPE, LDPE and PP plastics per the NYDEC's permit.
This is inaccurate.
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Those plastics have a market value which is somewhere around $0.30/lb to $0.35/lb.
That may be true for high grades of the above-mentioned, but as the price of oil falls, so does the price that the material fetches on the secondary market....The cost for plastics that have been processed by PTOI has been quoted as being between .01 - .03 a pound, which likewise would trend down from there with falling oil prices.
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At PTOI's stated 86% efficiency, it would take 8.1 lbs of plastic to make a gallon of oil. That's $2.43 worth of plastic
I've seen an 8.3 lbs / gallon of fuel ratiio given by the company. That's about $.083 worth of plastic.
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and even if that plastic can be turned into 100% pure salable diesel, the diesel spot price is only $1.73/gallon.
I believe that the process produces a mix of diesel and naphtha, at a very rough ration of 74% salable diesel and 26% naphtha, along with some pet coke residue. Not accounting for the naphha, that is about $1.28 worth of diesel (using your spot price) from $.083 worth of plastic.
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Since I'm including no other costs whatsoever, I'm being very generous
No need to be generous - your example collapses under the weight of its inaccurate & unrealistic assumptions.
The rate of return (before other costs, such as HTF, labor, & fixed costs are accounted for) for turning scrap plastic into diesel fuel with a PTOI flagship processor is an impressive 15,400% (not including the sale of naphtha).
That math is compelling, and is something investors should carefully consider.