Southern Oil Refinery to revolutionise waste oil use across Regional NSW.

Wagga Wagga will be the home of a ground-breaking oil recycling facility with an Australian company making significant upgrades to its refinery, thanks to assistance from the NSW Government’s Regional Investment Attraction Fund.

Wes Fang, Duty MLC for Wagga Wagga, said upgrades to Southern Oil Refinery will revolutionise waste oil use across regional NSW and deliver jobs and investment for Wagga Wagga.

Mr Fang said Southern Oil will modernise its facilities in the Wagga Wagga Special Activation Precinct so they can meet demands for light base oil lubricants and provide NSW residents with a cheaper alternative to imported oils.

“I’m very pleased to announce funding for infrastructure upgrades that will help create, retain and upskill employees in an innovative industry, while attracting significant investment opportunities to regional NSW,” Mr Fang said.

Deputy Premier and Minister for Regional NSW, John Barilaro said the upgrades will help position Southern Oil as a key competitor on the global stage. “These upgrades will enable recycled oil processes to be established in regional NSW, providing a more affordable alternative to imported products,” Mr Barilaro said.

“This is exactly the kind of project the Regional Investment Attraction Fund is designed to deliver, and what the Regional Job Creation Fund is helping to bring forward after we announced the new $100 million fund recently.”

Southern Oil is a high-performing Australian-owned company based in Wagga Wagga that has been re-refining waste oil since 2001, and an upgraded facility enables manufacturing of higher quality lubricants demanded by modern vehicles to take place in Australia.

Southern Oil Managing Director, Tim Rose said Southern Oil offers an environmentally friendly alternative to burning waste oil by using a refining process that produces zero waste to make recycled base oils, fuel oils and bitumen components. Mr Rose said the refining process will effectively enable a near perpetual cycle of use and re-use of a finite resource. “Through this grant we have been able to upgrade our process to produce a higher quality of base oil which has previously only been available via imports, and I thank the NSW Government for making this possible,” Mr Rose said.

Southern Oil’s Wagga Wagga plant is one of two facilities in Australia producing fully re-refined lube oil and re-refines about 12 per cent of Australia’s annual waste lube oils from engines, hydraulics and gear oils.