Mill scale is the by-product of iron and steel industry. It can be recycled via sinter plant or solid as sinter feed materials. 85 to 90% of the constituent particles are more than 0.008 inches. The iron content is near around 70 %, with a very small amount of alkaline compounds and non-ferrous metals. Mill scale is polluted and contaminated with lubricants, oils and greases from the equipment. In this experiment for recovering of oil from mill scale, it is treated with three different methods. Then all methods were compared according to the ability of oil elimination and iron recovered. After washing and boiling with surfactants, large amount of polluted waste water becomes a problem for environment so this wastewater was utilized for making of Microbial Fuel Cells (MFCs), production of electricity in MFC depends on the biodegradation of organic materials, so different waste were added in wastewater for making MFC. The remaining of MFC was converted in bioethanol, biodiesel and biofertilizer. So this research is economical and environmentally friendly and fulfilled the important aspect of green environment with zero waste. It will be a mile stone in the research of metallurgy, environmental engineering, recycling technology and zero waste management.