Wang Chengkui, a shareholder and legal representative of the Kangrun manufacturing company, will also have all his assets confiscated, the court ruled.
Wang made cooking oil out of discarded inedible materials, such as skins of chicken and pig offal, China's official Xinhua News Agency reported.
He then sold the oil to oil processors and food producers, making more than $10 million.
The court sentenced 14 other people who were involved in the case to up to 15 years in prison.
Gutter oil is an ongoing problem in China, Xinhua said, as the oil contains carcinogenic substances and can be dangerous when consumed.
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