Skip to main content.

Used oil recovery

Used oil recovery programmes have been in place for some years. The major oil companies operate nationwide collection networks and supply used oil to Milburn, New Zealand's Westport cement kiln. Milburn receives approximately 12 million litres a year of the 30 million litres estimated as available for collection. Eight to 10 million litres that cannot be accounted for is thought to be burned in low temperature burners, used for road oiling, stored or dumped.

The national used oil recovery networks have a number of gaps. A shortage of collection points in some areas and a lack of information to the public have led to illegal dumping, discharge to sewers and stockpiling in some areas. Conversely, there is competition for the oil in areas with large demand for used oil as a fuel.

The Ministry for the Environment's December 2000 discussion document, Used oil recovery, reuse and disposal in New Zealand: issues and options looked briefly at options for strengthening used oil collection networks. The need to improve recovery networks was the most prominent theme in submissions on the discussion document.

The Ministry for the Environment has since completed more detailed work on different recovery options. The new work evaluates the likely effectiveness of:

  • the status quo (a voluntary recovery network run by the large oil companies)
  • a national, levy-based scheme, voluntary or regulated
  • a compulsory "take back" scheme, similar to that applying in British Columbia.

The evaluation was undertaken by PA Consulting and is reported in Options for Oil Recovery in New Zealand. On the basis of the information available to the researchers, the levy-based scheme appears to be the best value for money. The Ministry is now asking industry groups and others to look at issues such as the underlying assumptions about costs and numbers of outlets so the findings can be validated. The Ministry will be reporting to the Minister for the Environment when the information is available.

Last updated: 17 September 2007