Diesel Fuel Supplementation
The criteria that must be used in electing on-site recycling options involves the volume of used lubricating oil generated annually. Diesel fuel on-site use includes the volume of diesel fuel used (40,000 gal/yr is required to burn 2,000 gallons of used diesel lubricating oil at a 5 percent mixture ratio), volume of diesel lubricating oil generated, diesel engine warranty, and activity policy.

Boiler Fuel
Used lubricating oils from internal combustion engines, steam turbine and gear oil, petroleum-based gear lube oil, and mechanical pump oils can be dewatered and filtered for use as a supplement to No. 6 burner fuel or used to fuel dedicated waste oil burners. To burn these used oils in a boiler, may require a permit from the state that defines the source of the fuel. The boiler must be of a special design to burn used oil and must meet federal containment limits. Technically, the Navy can burn used lubricating oil, but in practice it is not done.

Burning used lube oil as a supplement to No. 6 fuel oil will increase boiler maintenance costs. Although burning used oil as a burner fuel supplement is cost-effective, if the blend of No. 6 oil with used lube oil exceeds 50 percent, the maintenance costs will increase.

When considering burning used oil in boilers at military installations, users should coordinate with the installation Civil Engineer, Public Works officer or equivalent authority. Acceptable oil types (e.g., synthetic, petroleum-based, etc.) air emission concerns, and regulatory permit requirements should be determined. Also, users should consider the regulatory requirements of Title 40 Code of Federal Regulations (CFR) Part 279, Subpart G, "Standards for Used Oil Burners Who Burn Off-Specification Used Oil for Energy Recovery". These requirements impose restrictions on burning and specify procedures for notification, rebuttable presumption, storage, tracking, and notices.

Vendors, such as Black Gold, manufacture dedicated waste oil burners that are designed to burn high carbon content waste crankcase oils, lubricating oils, automatic transmission fluids, and No. 2 heating oils. Black Gold offers turnkey systems that include everything but the fuel.

The compliance benefits listed here are only meant to be used as general guidelines and are not meant to be strictly interpreted. Actual compliance benefits will vary depending on the factors involved, e.g., the amount of workload involved.

These oils should be accumulated by the generator in clean, well-labeled, and color-coded drums. (Drums should be labeled with the words "Used Oil.") When the drum is full, the generator should complete a standard 1348-1 manifest form and request Public Works or another appropriate activity to transfer the drum to the central storage facility.

When storing used lubricating and gear oils for on-site energy recovery, users should consider the requirements of 40 CFR 279.22, "Used oil storage," which include storing used oil only in tanks, containers, or units subject to regulation under 40 CFR 264 or 265. Storage should be achieved in clean 55-gallon labeled drums, bowsers, buffaloes, above-ground tanks, or railroad tank cars. If drums are used, they should be covered so that water does not collect on top of the drum and possibly contaminate the contents. Storage containers should be placed in an area that is bermed or diked to contain spills and prevent them from reaching groundwater.

• Reduced waste oil disposal.
• Reduced diesel fuel and fuel oil purchases.

The basic equipment costs of recycling used lubricating oil as a diesel fuel supplement are $8,500 to $10,000, and the total capital investment ranges from $57,000 to $80,000. These costs assume that a storage tank for the diesel fuel exists. The total capital investment includes installation materials and labor, training, and start-up materials costs. Payback period of these initial investment costs can be achieved in less than the estimated 10-year life of the equipment.

A brief summary of the costs of recycling used lube oil as a diesel fuel supplement follows:

Waste Oil Burners
Material and installation costs for a 200,000 BTU/Hr. (1.4 gallons per hour of waste fuel) waste oil burner is estimated to be $9,500. The waste oil burner will require a 2,000-gallon, above-ground tank to store the waste oil, at an estimated cost of $8,000. Total installed cost allowing for training and SPCC preparation (update) is estimated to be $18,700. Assuming a status quo disposal cost of $0.75 per gallon for oil, the payback period is approximately 3.5 year.

A brief summary of the costs of recycling used lube oil as a diesel fuel supplement follows:

Click Here to view an Active Spreadsheet for this Economic Analysis and Enter Your Own Values. To return from the Active Spreadsheet, click the Back arrow in the Tool Bar.