Used Oil
Western Australia has a high level of used oil recovery, when compared with world standards. Previously, used oil was processed to provide a burner fuel for lime kilns and/or power generation in remote or regional centres. In recent times however, the domestic power generation market has been in decline as a result of conversion of power generating facilities to gas powered installations or the retention of coal firing. The closure of a lime kiln facility in 2006, which was a significant burner of used oil, has also contributed to the decline in demand for used oil. Additionally, the economic boom currently experienced in WA as a result of the growth of the mining industry, has seen the generation of increased amounts of used oil.
This decline in used oil markets and concurrent steep increases in used oil generation, has led to significant differences between supply and demand. This has placed considerable pressure upon oil recycling companies who reached maximum storage capacity and were obliged to reduce their collections from businesses that generate used oil. Furthermore, new markets that have been established internationally, have reduced the pressure on storage, but the markets themselves appear marginal financially and this has resulted in the used oil processing companies introducing an oil collection charge, to ensure their own viability. This has introduced considerable financial impacts upon local governments. The above scenario has therefore led to a lack of certainty that WA’s high level of used oil recovery will continue.
The Waste Authority has instigated a study to identify and analyse options available for improving the long term certainty of service provision for used oil collection and reprocessing across the state. The main purpose is to clearly identify the outcomes that could be expected if selected options for used oil management operating successfully in other locations internationally were applied in WA. This project will enable the State Government to identify opportunities for best practice of used oil management in WA. The Waste Authority has allocated up to $340,000 over two years, to offset (to a maximum of 50%) the collection costs incurred by local governments; to be administered by the WA Local Government Association (WALGA).
Used Oil publications:
Att 2: Item 9.2.2 Waste Authority Meeting (2 December 2009)- Used Oil Collection Service for Local Government: Period 1 1 Jan - 30 - Jun 2009
Published: 2009-10-15
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