A british inventor created a setup with two long vibrating plates with ferrofluid in between. A flaky powder made from garbage was dumped in on one side and came out the other end beautifully separated in many layers by density. (with one mixed layers in between that went back in at the beginning) Innitially he "knew" it was silly to use something as expensive as ferrofluid but planned to try other substances if it worked. It turned out the process produced a lot more ferrofluid than it used.

No one was interested in further research.

edit: I see some research is now happening.