From hydraulic oil in excavators to lubricants from gold mining machinery, WM New Zealand’s Technical Services team in Christchurch is turning waste oil into a valuable industrial resource. By collecting, refining, and selling recovered fuel oil, they’re helping South Island businesses dispose of waste responsibly — while creating a product with real economic value.
The Christchurch-based Technical Services Oil Recovery team operates four tanker trucks and two truck/trailer units, collecting used oil from workshops, gold and coal mines, scrapyards, and other businesses across the South Island.
Last year alone, the team collected and processed over 3.2 million litres of waste lubricants, all brought back to Christchurch for refinement.
In Christchurch, waste oil is first passed through a mechanical filtration system to remove sediments, sludge, and contaminants. It is then stored in large bulk tanks for at least 48 hours, allowing water to separate and be decanted. A final filtration step ensures the oil meets strict quality standards before being sold to customers, including roading contractors such as Fulton Hogan and food-processing facilities.
At Tegel in Canterbury, for example, strict air consent conditions require careful monitoring of any oil burned in the plant. Contaminated or low-grade oil could result in fines or even paused production — making quality control essential.
To improve the quality of their recovered oil, Technical Services invested nearly $250,000 in an additional self-cleaning filtration system — an uncommon step among competitors. The new system improves efficiency, reduces maintenance downtime, and produces a higher-grade oil.
The results speak for themselves: Tegel now only requires quarterly quality tests from Technical Services, down from monthly checks.
The enhanced product quality has attracted attention from other companies, including Isaac Asphalt Ltd, a large roading contractor supplying projects across Canterbury. They’ve switched from their previous supplier to Technical Services’ recovered fuel oil, opening opportunities for other contractors to follow suit.
Technical Services tanker drivers also identify ways to improve efficiency during collection. Some businesses mix different types of oil in a single drum, creating processing challenges. By providing additional drums and guidance, Technical Services helps customers separate hydraulic, motor, and other lubricants, simplifying the recovery process.
While EV adoption means waste oil volumes may decline over time, workshops and factories will continue to need responsible disposal solutions for decades. Through innovation, investment, and careful attention to quality, WM New Zealand’s Technical Services team is maximising the potential of this resource — turning waste oil into industrial gold.
Our WM Oil Recovery team has been diligently collecting oil in the South Island for 13 years, prioritising adherence to top compliance standards and environmental preservation.
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