June 28th 2007.

OSS Group win two-year court battle over fuel from recycled oils.

The OSS Group has won its long running battle with the Environment Agency over whether waste lubricating oil can be recovered to a non-waste status prior to being used as a fuel.

The company took its case to the Court of Appeal last May where it was heard by three judges; The Master of the Rolls, Lord Justice Carnwath and Lord Justice Maurice Kay.

Today (June 28th 2007) judgement was given by the court in favour of OSS, clearing the way for the company to continue to produce and sell its Clean Fuel Oil product.

At the appeal hearing in May, DEFRA had also put forward its views on this issue which were generally in line with the OSS position; that waste lubricating oil could be recovered as a fuel.

In his judgement statement, Lord Justice Carnwarth commented that he hoped that it may be possible for DEFRA and the EA to join forces in providing practical guidance for those affected. Also that it is important that the national authorities use their expertise and experience to assist those concerned with the treatment and handling of waste.

According to OSS MD, Andy McNair, “This is excellent news. It means we can continue production of our CFO and our customers can continue to benefit from a lower cost alternative to virgin fuels.”

In 2005 the company introduced a new fuel oil produced, via a refinery process, to the equivalent virgin fuel oil specification of BS2869. The Environment Agency disagreed with its product status saying that it should be classed as a waste, thus blocking its use in most industrial processes.

The company commenced a legal battle, which, today, reached its final conclusion.

“This is a victory for common sense,” says McNair. “Our CFO is indistinguishable as a product from virgin fuel oil. As a fuel oil it performs just like virgin oil but, most significantly, it recycles waste oils, it costs less than virgin fuels, it conserves fossil fuels and it produces less harmful emissions than a number of its virgin equivalents.

“Detailed discussion is now required between us, DEFRA and the EA to determine specification, processes and protocols. We have already put forward our proposals and look forward to progressing this to the benefit of industry in general.”

Two year legal debate

In 2003 OSS commenced research into producing a new type of fuel oil from recycled waste oils. Through its own £3million R&D programme the company developed a refinery process at its Midlands plant in Stourport to produce Clean Fuel Oil (CFO), a residual fuel oil with a BS 2869; 1998 specification. As such it was indistinguishable as a product from virgin fuel oil and, as indicated by legislation, would not be classed as a waste.

The new Waste Incineration Directive (WID) had made the sale and use of any fuel classed as a waste virtually an impossibility.

However, in December 2005 OSS was advised by the EA that it considered that CFO would be classed as a waste, not a product, and could therefore not be used as a fuel outside the confines of the WID. The company sought to fight what it considered to be an irrational decision through a Judicial Review and the subsequent appeal.

The OSS Group Ltd has been operating for 15 years. It employs 150 people and has four processing plants and 11 transfer stations across the UK. The company is principally engaged in the collection and recycling of waste oil and other hazardous waste materials from UK industry.

The UK produces circa 400,000 tonnes of waste oil each year, largely from garages servicing private and commercial cars, buses and trucks.

-ENDS-

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