The best oil separation is ...

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The best oil separation is depending on the forms of oil in the wastewater: via free oil or emulsified oil.

You can easily and mechanically remove the free oil by hydro-cyclone or an interceptor or grease trap.

For emulsified oil, a DAF unit with chemical coagulant would be better.

Do not try any filtrations, such as MF or UF! It will be blocked straight way and very difficult to be recovered.

You may also use granular activated carbon or other material to adsorb the oil and incinerate them later.