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An easy way to use wast heating oil is to burn it for heating - but of course it will depend on what sort of boiler you have... If you are able to find a heating boiler which is designed for low-grade heating oil (poor quality diesel/kerosene) then it will probably be fine to use it in that - especially if you mix it for example 50-50 with the normal fuel.

I have successfully run vehicle diesel engines (not the modern computer controlled type but the traditional all mechanical engines) on fresh vegetable oil, they are quite happy with that as long as it is kept warm enough to avoid waxing on the fuel filter. Using waste oil might be possible but you would have to filter it and probably mix it with normal diesel fuel. The only way to really know is to try it and see... the filters or the burner (in a heater system) are where you will have problems,and both are easy to change or clean out, so you don't have to take much of a risk experimenting as long as you are confident to do any post-experiment maintenance necessary...

Hope that helps

Tony