Oil recycling judicial review set for November (02.08.06)

An oil recycling company is preparing for a judicial review over the Environment Agency's decision to class its product – a recycled fuel oil – as a "waste".
The OSS Group said this week that the case will be heard in November, when a judge will consider why the Agency is blocking the sale of its recycled "Clean Fuel Oil" (CFO) by classing the product as a waste.
By classifying the product as a waste, customers that use it must meet environmental legislation for the handling of wastes.
The OSS Group has invested £3 million in its plant at Stourport, but all could be in vain if the Agency succeeds in blocking sale of its product The Merseyside-based firm will claim at a judicial review in November that its recycled fuel oil meets the same standards as virgin fuel, and should be classed as a product.
OSS is angry because it has spent millions trying to develop the recycled fuel at its Worcestershire plant so that users could use it instead of virgin oil. It has sought guidance from the Agency in doing so.
By classifying the product as a waste, the Agency wants any companies that use the recycled oil to comply with strict European emissions controls set for the burning of wastes. These controls do not affect the users of virgin oil.
DirectiveThe controls in question come from the EU Waste Incineration Directive, which came into force at the beginning of this year, requiring waste incinerators to install costly emissions cleaning equipment.
OSS Group managing director Andy McNair said: "Three years ago we started the research for an alternative product. We put £3 million into creating a fuel that would satisfy the new legislation. We provided the EA with extensive data, asked for technical discussion and guidance but got nothing back.
"We went ahead with the product, and 10 days before the new laws came in we were informed by the EA that our CFO would be classed as a waste and therefore unable to be used by most industries," he continued. "It hadn't even sampled our new fuel."
OrderOSS first took legal action against the Agency in March to get it to reverse its decision. The High Court issued a temporary order allowing OSS to produce and sell CFO and for industry to use it.
The Agency then appealed this decision on June 29th, but lost on all counts.
Now, the case will come to a full judicial review this autumn. Mr Mc Nair said: "We find the whole situation difficult to understand. The UK desperately needs a safe way of disposing of its waste oil. Defra has stated that products derived from waste oil, processed in a refinery and indistinguishable from the virgin equivalent, may not be a waste. This is exactly what we do to get CFO."
"This product will play a part in protecting the environment so it seems strange that the EA is trying to block it," he added.
Mr Mc Nair said sales of the CFO product are already picking up, particularly in the quarry industry "roadstone" coating plants.
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Environment Agency AgencyThe Environment Agency told letsrecycle.com yesterday that it could not comment for ongoing legal reasons.
However a spokeswoman insisted: "We support the recovery and recycling of materials including waste oils, but it is important that regulations are followed to protect the environment and human health."