Converting Waste Plastic to Ultra-Clean, Ultra-Low Sulphur Fuel

Categories: Green

Plastic2Oil® was born out of the innovation of its founder, John Bordynuik. Mr. Bordynuik's data recovery and restoration process has provided the Company access to valuable engineering discoveries dating back to the 1950s.

In 2009, Plastic2Oil® began developing its P2O technology with a laboratory desktop unit. The laboratory unit was used to perform initial tests on the conversion process and to determine the quality of the fuel product. Several reputable independent labs verified that the fuel output passed ASTM testing. The Company continued to test and scale the P2O process by building a 1-ton processor. In December 2009, Plastic2Oil® contracted IsleChem, LLC of Grand Island, NY to assist with chemical, analytical and process engineering. In April 2010, after multiple test runs, IsleChem validated that Plastic2Oil's P2O process was repeatable and scalable. It was concluded that almost 90% of the hydrocarbon composition in the plastic feedstock is converted into ready-to-use liquid fuel. Mr. Bordynuik and his team developed technology in the process to separate and refine the fuel that can be sold as a finished product directly to the Company's customers without the need for further refining.


The P2O processor was scaled from a desktop model to a 1-ton and then a 20-ton commercial unit in Niagara Falls, NY. This processor has undergone significant testing, refinement and expansion. In the fall of 2010, an air emissions stack test was conducted by Conestoga-Rovers & Associates (CRA). The CRA stack test results have confirmed that the P2O processor emissions are not only well within the limits allowed under a New York State Department of Environmental Conservation (NYSDEC) Air Permit, but also approximately 15.97% oxygen is emitted back into the air through the stack from the process. Also, the processor emits fewer emissions than that of a natural gas furnace of a similar size.

During the second half of 2010, Plastic2Oil® transitioned to become an innovative fuel company. In December 2010, the Company leased a Materials Recycling Facility (MRF) close to its fuel storage and blending operation for collecting feedstock.

During Q1 of 2011, major additions and modifications were made to the processor, including back-end refining and fuel quality controls. On June 14, 2011, the NYSDEC issued all permits necessary to operate our P2O processors in Niagara Falls, NY.

In April 2011, Plastic2Oil® and Smurfit-Stone Container Corporation entered into a referral agreement arrangement and the Company made its first fuel sale. In June 2011, Plastic2Oil® entered into a fuel supply agreement with Coco Paving, Inc. On July 29, 2011, Plastic2Oil® entered into a 10-year referral and revenue sharing agreement with RockTenn to convert mill by-product waste into fuel using the P2O technology.

After extensive preparation and numerous site visits by the Canadian Technical Standard and Safety Authority, the Company received its Bulk Fuel Blending License on October 13, 2011. This permit will enable the Company to dye, blend and ship both industrial and transportation grade fuel from its 250,000 gallon fuel blending facility in Canada.
During Q3 and Q4 of 2011, the Company successfully completed the fabrication, installation and testing of the plastic pre-melt system. The pre-melt system is capable of accepting unwashed, unsorted waste plastic, composites and commingled materials. The pre-melt system operates on the off-gasses from
the original P2O reactor system and has the ability to separate commingled materials from the plastic.
In addition to the completion of the pre-melt system, the Company further enhanced the first P2O processor in Niagara Falls by installing “low nox” (nitrogen oxide) burners. This addition resulted in a significant reduction of already low emissions and was important when seeking permit exemptions in other U.S. states. Furthermore, this improvement enabled the Company to seek and obtain an air permit exemption at the location of the first RockTenn site.

In December 2011, CRA conducted a second successful stack test on the first processor. The results of
this second stack test showed emissions decreased with increased plastic feed rates, which further validates the P2O process as highly green, clean and scalable.
During Q2, Q3 and Q4 of 2011, the Company contracted fabrication shops to manufacture parts for the second and third processor.

Plastic2Oil® also secured 2 significant long-term fuel supply agreements in December 2011. On December 21, Plastic2Oil® signed a long-term fuel supply agreement with Indigo Energy Partners, LLC. Under the terms of the agreement, Indigo Energy will off-take No. 6 Fuel, from the P2O facility in Niagara Falls, NY. On December 23, Plastic2Oil® signed a multi-year transport fuel supply agreement with XTR Energy Company Limited. Plastic2Oil® will be supplying Regular Transport Gasoline, Premium Transport Gasoline, Diesel Ultra LS Clear and other acceptable road transport products to XTR Energy.

During Q1 of 2012, the Company successfully brought Processor No. 2 online at its Niagara Falls facility. The design of the second processor was based on data retrieved while working with the original P2O processor, which had undergone a number of substantial upgrades. The enhancements include a replicable and deployable modular design that leverages economies of scale with our manufacturers, the ability to cater to specific fuel needs of customers and a reduction of stack emissions.
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