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 2.8.2 Cost of Burning Waste Oil
Based on the above
typical cost and savings factors for use in calculating the
economics of burning the waste oil are as follows:
Recurring
Costs:
o
Segregation
required
only
for
burning.
o
Testing
to
determine
safe
burning
properties.
o
Mixing/blending
of
waste
oil
with
new
fuel,
if
required.
o
Price that waste oil could be sold for under contract.
(If waste oil is burned, the income loss from potential
sale is a cost of burning.)
One-Time
Costs:
o
New facilities
and
equipment
required
to
use
waste
oil
as a fuel.
Savings:
o
Cost of new fuel not purchased due to burning waste oil.
If the savings in fuel purchases are greater than recurring
costs, the payback period for the one-time cost can be calculated
(see Appendix C for details).
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