FAQs
Southern Oil
Southern Oil Refining (Southern Oil) is a private, 100% Australian owned company, based in Wagga Wagga, NSW, which has been re-refining waste oil since 2001.
Southern Oil re-refines waste lube oil for reuse as lube oil – its best and highest use and a cradle-to-cradle solution.
We produce no waste, reduce the need for oil imports and our product has a significantly smaller carbon footprint than crude base oils – making us a natural partner for organisations that are committed to protecting and enhancing their environmental credentials and reputation.
Southern Oil’s Wagga Wagga plant and Northern Oil Refinery at Gladstone are the only facilities in Australia producing fully re-refined lube oil accredited for use by a major international oil company for global applications.
J.J. Richards & Sons is Australia’s largest waste management company, with operations in Queensland, New South Wales, Victoria, South Australia and New Zealand. It is a family-owned business based in Cleveland, Queensland.
J.J. Richards & Sons is a joint venture partner of the Northern Oil Refinery.
The Northern Oil Refinery (NOR)
The Northern Oil Refinery at Yarwun, near Gladstone, is the only facility in Queensland capable of recycling waste lube oil back into base lube oil and is the most advanced re-refining plant of its kind in the world.
It can re-refine up to 100 million litres of waste lube oil a year, meaning 100 per cent of Queensland’s annual waste lube oil production can be processed through Gladstone, underwriting a new industry and local jobs.
The Northern Oil Refinery brings together the re-refining expertise of Southern Oil with the established waste collection knowledge and geographical coverage of J.J. Richards & Sons to provide a long term, environmentally sustainable waste oil recycling option for truck fleets, heavy vehicle operators, mines and local governments.
The Refinery will collect and transport waste lube oil from across Australia – at no additional cost to the waste oil generator – to undergo Southern Oil’s leading re-refining process.
The re-refinery operates under a strict environmental management regime, including:
- No trade waste connection – no effluent will leave the site (ie no discharge to Gladstone Harbour)
- The operating site is fully concreted and sealed to protect groundwater. Groundwater will be monitored regularly to ensure compliance
- An odour minimisation/management plan is in place and licence conditions specify that no offensive odours are to leave site
Lube Oil
Lube oils are a blend of base oil and additives. The basic functions of lube oils are to:
- reduce friction
- remove heat, and suspend contaminants.
Over 80% of the base oil for Australia’s lube oil needs is imported, mainly from the Middle East via Asian refineries. Just 20% is provided domestically through re-refining waste lube oil. There are no crude base oil refinery's in Australia
The characteristics of the base oil and the intended end use determine which additives are used to produce the final product. Some of the additives used in lube oils and their functions are:
| Additive Type | Function |
|---|---|
| Detergents | Remove impurities to prevent residue build up on engine parts |
| Dispersants | Prevent contaminants in the oil from clumping together |
| Antioxidants | Retard the process of oxidation. Oxidation destroys an oil's ability to lubricate |
| Anti-wear | Bonds to metal surfaces to create a film between moving metal parts |
| Friction modifier | Makes oil more slippery. This reduces wear and improves fuel efficiency |
| Corrosion inhibitor | Prevents corrosion of metal surfaces |
| Seal swell agent | Prevents loss of fluid via gaskets |
| Viscosity modifier | Allows the oil to adapt to temperature changes, maintain its grade and retain its lubricating effectiveness |
| Pour point depressant | Allows oil to remain more fluid at lower temperatures |
| Foam inhibitor | Retards the formation of foam in oil |
| Red dye | Identification |
Waste Lube Oil
About 350 million litres of waste lube oil is collected in Australia every year. That’s equivalent to 140 standard Olympic size swimming pools.
Lubricating oil does not wear out. It just gets dirty. Re-refining waste lube oil restores the oil to its original condition. The lubricating properties of the oil are not compromised by use or re-refining.
The re-refining process recovers 99% of the lube oil component of the waste oil, creating a near perpetual cycle of use and re-use of a diminishing and finite resource.
A total of 60% of Australia's annual waste lube oil production is burned or used in explosives. These methods destroy a valuable commodity and permanently remove lube oil from productive use.
Re-refining back to base oil quality sits at the top of the waste management hierarchy and secures an environmental and economic value for used oil – to achieve the highest beneficial re-use for Australia.
Southern Oil’s Wagga Wagga plant and Northern Oil Refinery at Gladstone are the only facilities in Australia producing fully re-refined lube oil accredited for use by a major international oil company for global applications.
These re-refineries give Southern Oil the capacity to process over 30% of Australia’s annual waste lube oil production (including 100% of Queensland’s waste lube oil).
Re-Refining Waste Lube Oil
Lubricating oil doesn’t wear out – it just gets dirty and the additives in the oil lose effectiveness over time.
Re-refining waste lube oil restores the oil to its original condition. The lubricating properties of the oil are not compromised by use or re-refining.
The Southern Oil re-refining process removes all contaminants and restores the oil to its original condition.
The contaminants, such as dirt, water, fuel, and used additives, are removed through vacuum distillation.
The oil is then further treated to remove any remaining chemicals and provide consistent oil quality to international standards.
Southern Oil’s re-refining process produces no waste. Every component is reused and 99% of the lube oil component in the waste oil is recovered as high quality lube oil.
Southern Oil manufactures multiple grades of group 1+ base oil for a wide range of process oil and blending applicstions.
Southern Oil also manufactures multiple grades of fuel oil for a wide range of applications including marine and industrial furances.
The Environment
Lubricating oil does not wear out. It just gets dirty. Re-refining waste lube oil restores the oil to its original condition. The lubricating properties of the oil are not compromised by use or re-refining.
Southern Oil’s re-refining process produces no waste, creating a near perpetual cycle of use and re-use of a diminishing and finite resource. Every component is reused and 99% of the lube oil component in the waste oil is recovered as high quality lube oil.
Production of re-refined lube oil uses 60% less energy compared to the production of crude lube oil, all of which is imported into Australia.
The waste lube oil in Australia which is burned or exported to be burned produces a carbon footprint eight times greater than re-refining. Waste oil is classified as a hazardous substance and, if unregulated or burned at low temperatures, potentially releases a range of toxic compounds directly into the environment.
Over 60% of Australia’s waste lube oil is burned as a fuel every year.
Burning is considered by regulatory agencies to be recycling. This is a definition of recycling that does not apply to other products such as paper, organic waste or chemical waste.
Burning destroys a valuable commodity and permanently removes lube oil from productive use.
Each tonne of oil burned releases 2.92 tonnes of CO2e into the environment. If all of Australia’s collected waste oil was re-refined instead of burned, greenhouse gas emissions would be reduced by more than 1.02 million tonnes per year.
Re-refined oils are subjected to testing and must adhere to quality standards under the national Public Stewardship for Oil Act. Recycled oils for burning are not subjected to any quality specifications.
Used oil contains elements which are potentially harmful, including poly aromatic hydrocarbons, chlorinated hydrocarbons, heavy metals and dioxins/furans. These chemicals are known carcinogens and mutagens. Re-refining removes these harmful elements.
Waste lube oil is classified as a hazardous substance and, if unregulated or burned at low temperatures, can potentially release a range of these toxic compounds directly into the environment.
The Economy
Exporting Australia’s waste oil to be burned overseas doesn’t support jobs in Australia. Burning domestically only employs a handful of people at best.
Southern Oil employs locals in Wagga Wagga and Gladstone, and supports upstream and downstream jobs in both regions and across the east coast of Australia.
In Wagga Wagga, Southern Oil employs 32 full time workers and supports many more indirect jobs in the region and New South Wales.
In Gladstone, Southern Oil employs 40 staff and supports many more indirect jobs in the region and Queensland.
About 350 million litres of waste lube oil is collected in Australia every year. Wastefully, 60% is burned or exploded each year destroying this valuable resource.
Burning destroys a valuable commodity and permanently removes lube oil from productive use.
Some waste oil may also be explorted for use as low grade fuel in developing nations.
Waste lube oil is recognised internationally as a hazardous substance and exports should be restricted, to benefit Australia.
Exporting Australia’s waste oil to be burned overseas doesn’t support jobs in Australia. Burning domestically only employs a handful of people at best.
Southern Oil employs locals in Wagga Wagga and Gladstone, and supports upstream and downstream jobs in both regions and across the east coast of Australia.
Waste Lube Oil Producers
Southern Oil believes it is a natural partner for companies that are committed to protecting and enhancing their environmental credentials and reputation.
As mining companies, for example, and governments set higher environmental benchmarks, the processing and re-use of used lube oil may be a determining “point of difference” in setting and achieving sustainability reporting goals. Southern Oil can provide that point of difference.
High-end re-refining to recover base oil for re-use is the most environmentally responsible treatment of waste lube oil and Southern Oil believes it should be the process of choice for any used oil producer that is committed to its environmental credentials and reputation.
Southern Oil guarantees the highest beneficial re-use of waste lube oil – which it believes should be the only waste management option for organisations committed to sound environmental performance.
Southern Oil has been providing a “safe pair of hands” supporting corporate reputations and assisting companies to deliver on their environmental values for over 13 years.
The Product Stewardship for Oil (PSO) Program
The Product Stewardship for Oil program aims to establish an effective partnership for the management of used oil, involving oil producers, oil recyclers, local, state and territory governments, the Australian Government and the public.
The program is intended to reinforce existing state and territory regulations and arrangements.
The objectives of the program are to:
- provide economic incentives to increase the uptake and appropriate recycling and use of used oil
- encourage the environmentally sustainable management and re-refining of used oil and its reuse, and
- support economic recycling options for used oil
The planned outcomes of the program are:
- increased uptake and appropriate recycling/use of used oil with consequent reduced risk of major environmental and health problems from improper storage, use and disposal
- more ecologically and economically sustainable management of used oil by Australian industry, and in remote, rural and urban communities
- a sustainable used oil recycling industry, and
- increased industry and community awareness that used oil is a valuable resource and not a waste product, and a commitment to recycle used oil appropriately
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