Why Tank Bottom Oil Sludge and Residues Have Enormous Refining Potential

Why Tank Bottom Oil Sludge and Residues Have Enormous Refining Potential

The enormous refining potential of tank bottom oil sludge and residues stems from their outstanding advantages in raw material characteristics, technological maturity, and policy orientation, which can be broken down as follows:

I. Raw Material Characteristics: High Oil Content and Abundant Supply

High Oil Content with Great Conversion Value

Tank bottom oil sludge typically has an oil content of 20% to 50%, with some high-quality sludge even exceeding 60%—far higher than ordinary industrial solid waste.

This means it can be efficiently converted into fuel oil via pyrolysis and distillation, with an oil yield of 40% to 80% of the raw material weight, offering significant energy recovery value.

Massive Stock and Incremental Supply

China generates over 10 million tons of tank bottom oil sludge annually from the petroleum refining and storage industries alone, with a steady and continuous output.

If untreated, this sludge occupies large areas and pollutes the environment, while refining provides a large-scale resource-based solution.

II. Technological Support: Mature Processes and Controllable Costs

Core Technologies Have Achieved Industrial Application

Current technologies such as pyrolysis, solvent extraction, and catalytic hydrogenation can efficiently separate oil from sludge. The resulting fuel oil can be directly used in industrial boilers and marine power systems, and some can even meet national diesel standards after further processing.

Skid-Mounted Equipment Lowers Implementation Barriers

Modular skid-mounted refining units (e.g., Lvfilter’s equipment) feature short installation cycles and small footprints. Equipped with exhaust gas purification and wastewater treatment systems, they enable “on-site treatment and compliant discharge,” significantly reducing project investment and operational costs.

III. Policy and Market Drivers: Strong Demand Under Carbon Neutrality Goals

Policy Encouragement for Resource Utilization

China’s 14th Five-Year Plan for Circular Economy Development identifies the resource utilization of hazardous waste like oil sludge as a key task. Projects can enjoy tax reductions, hazardous waste disposal subsidies, and easier environmental impact assessment approvals.

Booming Demand for Energy Substitutes

Amid fluctuating international oil prices and carbon neutrality goals, the market demand for low-cost recycled fuel oil continues to grow. The products of oil sludge refining have stable sales channels, while also helping waste-generating enterprises reduce hazardous waste disposal costs, creating a win-win model.