A used cooking oil recycling company collects the used oil from restaurants using sucker trucks to vacuum the oil from tanks, which may be either inside or outside the restaurant. In New Jersey, Pennsylvania and Delaware, D&W Alternative Energy transports the used oil to a facility where we filter out the solid pieces and heat the oil to remove water. Once the used cooking oil is sufficiently pure we sell it to a biodiesel manufacturer to make biodiesel or renewable diesel.
The used cooking oil collection company must keep records of every pickup they make in order to comply with new rules from the EPA regarding the sourcing of used cooking oil. There has been a tremendous amount of fraud in UCO collection and processing and sales because of the lucrative credits available from both EPA and European regulatory agencies for oil collected and processed in this manner. Many times, dishonest operators have introduced cheap virgin oils such as palm oil and claim that it is recycled so as to be eligible for the credits for recycled oil. And the theft of used cooking oil from restaurants has become a large business.
Used cooking oil has value because it can be reprocessed into clean fuels such as biodiesel and renewable diesel and other products. The value of used cooking oil varies daily with a number of factors including government subsidies and the price of petroleum oil.
Used cooking oil collectors make their money after they pick up loads of used cooking oil, use large, specialized equipment to purify it, then sell it to companies that use it to make products such as biodiesel. The amount that the company can make on the oil depends on a variety of factors such as the daily fluctuating market value, the amount of oil they collect, the quality of the oil and more.
Commercial kitchens need to dispose of their oil properly to keep their facilities clean, avoid fines, and be responsible members of the community. Used cooking oil collectors provide the service that allows them to do so with limited extra effort. When the value of cooking oil is high, some used cooking oil pickup companies offer incentives to the restaurants. Depending on how much oil the restaurant produces, the collector may offer small, per-gallon payments directly to the restaurant. Alternatively, rather than paying directly for the oil, they may offer occasional services such as grease trap cleaning, or specialty oil storage tanks, free of charge.
The amount of money, services or products a restaurant is offered is directly tied to the quantity and quality of the oil it produces. Oil contaminated with water or garbage is worth much less—if anything at all—than used cooking oil that has been stored properly with few adulterants.
The price of used cooking oil, like any commodity, is driven by demand and supply. The demand for used cooking oil is driven by the need for used cooking oil to manufacture low carbon intensity biofuels to reduce carbon emissions which contribute to global climate change.
Government further drives demand by making production and sale of biodiesel/renewable diesel eligible for lucrative credits through the EPA RFS (Renewable Fuel Standard) Program. The state of California drives demand with credits and requirements from its LCFS (Low Carbon Fuel Standard Program). The credits from both programs can be bought and sold.
Biodiesel fuels compete with regular diesel, so naturally biodiesel prices go up and down with diesel prices which can, in turn, affect the price of used cooking oil.
Other factors such as the cost of animal feed (which used cooking oil can be used to make) contribute to price changes. But, the main driver of price for used cooking oil is the demand for biodiesel fuels and the government incentives and requirements for biodiesel fuels.
Used cooking oil is typically purchased by cooking oil recycling companies like D&W Alternative Energy. The industry has a few very large, nationwide players and a lot of regional companies.
These regional companies are typically located close to their clients and are efficient at providing high quality used cooking oil collection. The regional companies typically begin the processing of UCO and then sell to a biodiesel manufacturer to complete the transformation to biodiesel, renewable diesel or sustainable aviation fuel.
Choosing the right used cooking oil recycling company is very important to the success of a restaurant, hotel, casino or stadium. The wrong one can be a disaster. Imagine what happens if you arrive at your restaurant with full UCO tanks and a backed up grease trap. Here are the questions to ask when looking for a UCO company.
10 years is good. When oil prices are high fly by nighters enter the business and then disappear when prices go down. You want a company with longevity and a solid track record.
Call and speak to an existing client.
Get a copy and insure it is at least $1MM per occurrence.
This is a big one. No one wants to reach a call center at 1:00 am and wait while they try to find someone who can make a decision. You want the CEOs number and 24/7 access.
While you may not want indoor automation day one, there may come a time you want it. Talk to some of their existing customers who have automation. Ask them about the benefits of used cooking oil automation and what it will cost.
D&W Alternative Energy passes all of the tests for choosing the best used cooking oil recycling company. They have been in business since 2009, the CEO is accessible 24/7, they have more than adequate liability insurance, can provide references and are a leader in highly effective, low-cost automation.
D&W launched in Trenton, New Jersey in 2009. With great service, competitive rebates and indoor automation, it expanded across all of New Jersey and into Pennsylvania and Delaware. D&W has a history of providing creative, custom solutions to customer needs, particularly in its design and implementation of indoor oil recycling systems.
D&W gives back to the community in that all of our facilities are in New Jersey and we hire local drivers, warehouse staff, salespeople and customer service staff.
The company also works closely with local law enforcement to stop grease theft by providing access to its online grease theft tracker. We’ve also supported local researchers, providing our expertise to scientists at Rowan University.
Read more about used cooking oil recycling.
If your restaurant is in NJ, PA, or DE, give D&W Alternative Energy a call today.
(609) 902-5093
D&W