A meeting of Defra's stakeholder group, the Hazardous Waste Forum, on Monday saw the Oil Recycling Association warning that investment in oil recycling infrastructure is being stifled by current legal uncertainty.
ORA director Roger Creswell explained that the low margins for recycling oil in the UK are driven in part by Europe's Waste Incineration Directive, which places controls on the burning of materials classed as wastes.
As long as recycled oils are classed as a “waste” rather than a fuel, those handling it must be licensed to handle wastes, and face other regulatory costs associated with waste management.
Directive
Mr Creswell explained to the Forum meeting in London that Europe is amending the Waste Framework Directive to clarify waste definitions, but he warned that any changes could be two or three years away.
He said other factors in the low margins of oil recycling were the reluctance of waste producers to pay for their used oil to be taken away, and the lack of competition for used oil within markets like the steel and cement industries.
Defra has so far allowed the market to drive the recycling of used oil free from government interference, but the ORA warned that collections of used oil are down by 30%, with “significant regional disturbances” in the market, and “major levels of investment on hold”.
Hathaway
Mr Creswell is expected to meet with Defra's new head of waste management – Roy Hathaway – to discuss the issues after Mr Hathway begins in his new position later this month.
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Although Defra has suggested some form of producer responsibility for oils as part of the English waste strategy review – the public consultation of which closed yesterday – the ORA believes producer responsibility is not necessary.
The Association believes there is a “robust market” for waste-derived fuel oils, with demand particularly growing in Eastern Europe, but said definitions of when recycled oils cease to be wastes are badly needed, along with a set of European standards.
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