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 2.8 ECONOMICS OF BURNING WASTE OIL. The economics of burning waste oil as
a supplemental fuel is of interest in public works management and in
justifying facility projects for utilization of waste oil. While the
specifics will be different for each activity, most of the economic factors
are common, and guidelines for calculating costs and savings can be
determined (see Appendix C for elements to be considered). The following
required functions are computed for using the waste oil as a fuel versus
selling it from a central storage tank.
Sale:
Burning as a Fuel:
collection (segregation
collection and segregation
is sometime required)
transportation and
transportation and
centralization
centralization
water and sludge removal
water and sludge removal
(not required in some
testing
cases)
storage
storage
mixing/blending
2.8.1 Comparison of Burning Versus Sale. The following comments on the
functions of these two alternatives apply to most activities:
The cost of collection and transportation of the waste oil will be
the same for both methods of disposal.
Certain waste oil products must not be burned and must be segregated
and handled separately. Under some sale contracts and other disposal
methods this segregation is not required. Consequently, there may be
a unique cost of segregation associated with burning.
At most sites, the only treatment required prior to burning or sale
is gravity separation of the water and solids. The costs will be
about equal for both cases.
The cost of storage for sale is unique. A tank must be dedicated for
waste oil if the oil is to be sold. If water/solids removal is
accomplished elsewhere, the waste oil to be burned may be placed
directly into boiler fuel tanks. (A separate dedicated waste oil
tank may be installed at the boiler plant for convenience.)
Therefore, the cost for selling waste oil is necessarily greater than
the cost for burning.
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