Cold rolling oily sludge from the steel rolling process is considered hazardous waste and contains significant iron oxides and lubricants. The main component is 61.7% light oil, which is pyrolyzed at approximately 430 °C. Resource utilization is identified as a key pathway toward achieving sustainable disposal of cold rolling oily sludge. Prior researches on environmental assessment have been conducted for oilfield oily sludge disposal, applying these results to steel rolling oily sludge disposal may be biased, and the coking synergistic process for steel rolling oily sludge is in the pilot stage. Hence, focusing on the emerging technology of coking synergistic, the environmental impacts and economic feasibility of coking synergistic technology and the other two technologies (distillation-incineration and conventional incineration) were analyzed via life cycle assessment (LCA) and net present value methods. The results show that coking synergistic technology excelled in reducing environmental impacts, with a CO 2 emission reduction exceeding 35.7%. Furthermore, coking synergistic technology breaks even within three months with a profit of 2260 CNY per ton. Further exploration of the potential for the diffusion of coking synergies (CS) in the provinces was carried out, and four alternatives to coking synergies were designed with different market shares (0, 10, 20, and 30%). The results indicate that cold rolling oily sludge disposal in Hebei Province contributes 37% of the national CO 2 eq emissions. When coking synergistic technology becomes the primary alternative to hazardous waste incineration, national CO 2 emissions are expected to be reduced by 26.7%. Considering that coking synergistic technology must be dependent on the steel plant, adopting coking synergistic technology for suitable steel plants not only optimizes the utilization of cold rolling oily sludge waste resources but also significantly improves environmental performance.