Toxic fumes from unlicensed oil refinery trigger health fears

June 18, 2025 10:34 pm | Posted in Business News | Share now TwitterFacebook

By Nicholas Mwai.

An unlicensed used oil refinery that began trial operations this week at Stella Mare Stage 1 has triggered widespread concern among nearby residents and business owners, who report severe health effects caused by toxic fumes emitted from the facility.

The refinery, operated by New Era Energy Solutions Co. Ltd., is located directly across from Fletcher Construction Office and began a test burn on Tuesday. Within hours, local residents and workers reported symptoms including headaches, nausea, breathing difficulties, and vomiting—allegedly from inhaling noxious fumes released into the air.

A business owner told the Daily Post, “The facility started production yesterday (Tuesday), and since then, the surrounding area has been severely affected by highly toxic fumes. These emissions are clinging to buildings and seeping into homes and businesses, lingering due to poor air circulation.”

Residents claim the smell is more than just a nuisance, warning that the refinery is exposing the community to potential carcinogens such as polycyclic aromatic hydrocarbons (PAHs) and heavy metals, due to a lack of environmental controls.

“This is a serious public health risk,” the business owner added. “Some people vomited during the night, and many suffered from splitting headaches.”

In response to the outcry, Jim Zheng, Director of New Era Energy Solutions, confirmed the incident was due to a test burn of the company’s heating machine, during which an accidental leak occurred.

“We were trying to burn-test our heating machine on Tuesday, and there were some spills that caused the smell,” Jim told the Daily Post. “It was an accident. There was tail gas leakage due to emergency measures, but we will take precautions against this in the future.”

The company uses a pyrolysis process to convert used oil into fuel, aiming to produce locally sourced energy. Zheng said about 40,000 litres of contaminated water from Tuesday’s burn are now being stored and will be transported to Etas for disposal or reuse in remote power systems.

“There should be no wastewater except from yesterday’s accident,” Jim said, adding that all future output will be compressed into tanks for safe reuse.

Crucially, the Director admitted that the company does not yet have a full operating permit. He said Tuesday’s activity was part of internal testing and that while preliminary approval had been given by the SHEFA Provincial Government Council, officials from the Department of Environment had not yet completed the required site assessment.

“We are waiting for staff from the Department of Environment to check if it’s okay to start. They never showed up,” he said. “I’ve invested a lot of money in this project and am meeting with the permit officers today.”

Jim said the company hopes to receive a three-year operating licence once the assessment is complete. He also revealed that relocation to Etas is being considered in the longer term, if it is approved by the Port Vila City Council.