Oxy Vinyl Canada, a subsidiary of Occidental Petroleum, has agreed to purchase JBI's low sulphur heating oil, a product of Plastic2Oil process, for $109.80 per barrel.
As per the agreement, the first order of nearly 214 barrels of low sulphur heating oil is expected to be delivered this week.
JBI CEO John Bordynuik said the announcement is for the sale of JBI petroleum products derived from waste plastic.
An alternative oil and gas company JBI’s Plastic2Oil process converts mixed waste plastic into separated diesel, heating oil, and light naphtha fuels.
In the first quarter of this year, Bordynuik designed quality controls, fuel blending, and automatic additive injection so that the fuel produced is a final product, unlike crude oil, the company said.