Oil recycling in the UK is likely to be extinguished by spiralling collection costs for waste oil.

According to Letsrecycle.com, instead of being recycled for use as a fuel by power generators and roadstone plants, as a consequence of the Waste Incineration Directive these will no longer be able use the oil. Intead, the oil is likely to be end up being utilised by steelworks and cement kilns in steel and cement-making processes who will charge for taking the oil in.

Charges

Steelworks are exempt from the Directive but cement kilns are likely to charge for using the oil in contrast to the existing users who pay oil recyclers. As a result this charge will have to be passed on so forcing up the charges levied by collectors to local authorities, garages and industry for the removal of waste oil.

Steelworks

In the case of the steelworks, the Department for Environment, Food and Rural Affairs has confirmed that waste oil used as a reducing agent in the steel industry is not subject to the Directive. This means that the steel industry could take large quantities of waste oil.

Cement kilns

With regard to the cement industry, the sector is becoming more and more important in terms of burning waste materials from tyres through to hazardous materials. There are 15 cement plants in the UK and latest figures show that in 2002, 144,000 tonnes of waste was used as substitutes to fossil fuels in cement kilns. Industry predictions are that it could rise to 1.5 million tonnes within three years. Currently the cement industry utilises about 50% of used solvent waste, 10% of packaging waste and has the capacity to handle about 50% of the total volume of waste tyres.

The industry is seen as being well aware of the commercial opportunity that sits alongside its use of waste materials. In a briefing paper on the use of oil, the British Cement Association said: "Given the appropriate commercial arrangements the cement industry has the potential to use all the ‘‘waste oils‘‘ currently included in ‘‘recovered oil‘‘ as fuel."

Fuels Protocol

The use of waste oils in cement plans will be further encouraged by newly agreed Substitute Fuels Protocol. While 50% of UK cement manufacturing plants hold permits to use recycled liquid fuels and oil is already being included as source material for the manufacture of such fuels. So these plants will be permitted to use waste oils. Under the Substitute Fuels Protocol it is likely that other plants will be able to take in the oil