DAILY JOURNAL OF COMMERCE June 8, 1999 By Jon Savelle - Journal Environment Editor Firms stop burning money; burn used oil instead    Three years ago, Howard Levens was looking for a business to buy. His criteria were that the business had to be a supplier of environmentally friendly products, and it had to serve a niche market.    What Levens found fit the bill: a distibutorship of Shenandoah used-oil heaters and boilers, serving the western United States and points around the Pacific Rim. It's another step in a varied career for Levens, who previously ran a wholesale flower business, and, before that, directed the state's jobs and business retention program in the Department of Community, Trade and Economic Development.    As the term suggests, a used-oil boiler or heater burns used crankcase oil, hydraulic oil, transmission fluid or even tainted vegetable oil. To any business operator who generates sufficient volumes of this stuff, a burner makes good economic sense: It eliminates the cost of getting rid of the oil, and it also eliminates the need to buy oil for heat.    This kind of no-brainer economics is catching on. Levens said his business has been growing by 15 percent per year, and shows no signs of slowing down.    Part of this growth can be attributed to an increased awareness among businesses of the costs of energy and disposal of oil. Another part is word-of-mouth sales, and a third part is repeat business from established customers. And, last but not least, the Internet is bringing in sales.    Those customers include car dealers, auto repair shops, quick-lube shops, equipment rental businesses and trucking companies. Levens said King County has waste-oil heaters, or "unit heaters," at its Cedar Hills landfill, and Brundage Bone, a Kent concrete pumping contractor, has bought two.    Don Heinz, assistant manager of Brundage Bone, said the company's first unit heater was installed in its maintenance shop. A 60-foot by 90-foot space with 30-foot ceilings, it used to cost about $1,000 per month to heat using electric infrared.    Now all heat comes from burning the used oil and hydraulic fluid drained from the company's concrete pumpers -- some 1,200 to 1,500 gallons per year. The shop's heating bill is history, and so is the 10-cents-per-gallon cost of hauling away used oil.    "I would say within the first two years it paid for itself, if not sooner," Heinz said.    Levens says the average payback period is 12 to 24 months -- bearing in mind that there are numerous oil burner models and prices, and a wide variety of installations. He said unit heater prices start at about $3,000 installed, but that can rise to $15,000 for a top-of-the-line oil-fired boiler.    The boilers typically heat water for radiant floor heat, frost pads (heated outdoor pavement in cold climates) and car washing. One user is Carco, in Renton, an auto dealer. There, a 30,000-square-foot building is heated entirely by used oil. The boiler, a Shenandoah L60, is designed to burn crankcase, transmission and hydraulic fluids up to SAE 50, as well as No. 1 and No. 2 fuel oil.    Both Carco and Brundage Bone are practically neighbors of Levens's Northwest Industrial Equipment. But other customers are farther afield.    Thanks to the magic of the Internet, Levens has sold heaters and boilers to customers as far away as the Russian Far East, not to mention Alaska, Canada and other points around the Pacific Rim. Many of those users are in remote places, like the Aleutian Islands, where they have to rely on Levens and parcel delivery services for parts and repair work.    "We have a 1-800 number for Canada and the U.S.," Levens said. "People can call in to our service techs here, (who) are capable of diagnosing the problem over the phone. If they need parts, we can send it by FedEx, DHL or the U.S. Postal Service."    For Russian customers, Levens will pick up and deliver parts and components to Aeroflot, the Russian airline, at Sea-Tac Airport. Similarly, far-flung Alaskan customers can use Alaskan Airlines' "Gold Streak" delivery service, which carries parcels on scheduled passenger flights.    "We pick it up, work on it, and it's back on the airplane in 24 hours," Levens said.    Besides its basic sales and service business, Northwest Industrial Equipment is a licensed installation contractor and an installation design consultant. Levens said the company often will work with the factory in Harrisonburg, Va., to meet customers' specific requirements.    Most sales are through a network of dealers and mechanical contractors. But Levens said more dealers are needed, and customers can buy directly from him if necessary.    Northwest mechanical contractors who are familiar with the oil burners include Northwest Mechanical; Fairway Mechanical, in Bremerton; and the James Co., in Mukilteo. Poe Construction, in Auburn, has also handled them.    But a surprising number of customers have found Levens's company on their own, on the Internet. What's more, they often have used the Internet's World Wide Web to research the product, and are well informed when they call.    "We delivered equipment two weeks ago to a guy who had hit our Web site; he's in Leavenworth," Levens said. "A Vancouver, B.C. firm uses our boilers for burning cruise ship bilge oil. They found us on the Web.    "Since we've been on the Web, I've saved money on postage and mailers." Photo