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October 22, 2025
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CAPTURING THERMAL ENERGY FROM WASTEWATER & SEWAGE

Two new studies from Foresight Canada & Vancouver’s Zero Emissions Innovation Centre provide the technology landscape and business case for harnessing waste heat into scalable solutions reducing costs, strengthening energy security, and advancing Canada’s clean economy

“The Waste Heat Recovery & Thermal Storage: Technology Landscape Study Waste Heat Recovery & Thermal Storage: Technology Landscape Study
maps the market-ready technologies, adoption trends, and opportunities across Canada—from sewage heat recovery and industrial heat pumps to district energy systems and thermal energy storage.”

-- Alyssa Kelly, Director, Research, Foresight Canada

The Wastewater Energy Transfer: Business Case highlights the financial, environmental, and operational case for Wastewater Energy Transfer (WET) systems, showing how municipalities, developers, and utilities can capture sewage heat to cut emissions by up to 90%.”

--Nina Bader, Manager Water, Foresight Canada

Responses provided to WATERTODAY by Alyssa Kelly & Nina Bader, Foresight Canada

WT: Waste heat to Wastewater Energy Transfer – give us an overview please.

Bader: Each year, massive amounts of heat are released into the environment from buildings, infrastructure, and industrial processes. This “waste heat” is an untapped, low-cost, low-carbon energy source. One of the most promising solutions is Wastewater Energy Transfer (WET), which captures thermal energy from sewage and wastewater and repurposes it to heat and cool buildings. Particularly when integrated with District Energy Systems (DES), WET technologies offer efficient and sustainable energy solutions for urban environments.

Developed in partnership with students from the Schulich School of Business, the new business case report demonstrates the financial and environmental benefits of WET systems, helping municipalities, developers, and utilities understand why adopting this cleantech makes sense.

This study complements our recent Waste Heat Recovery & Thermal Storage Technology Landscape Study.

WT: How does this previous study show how to cut emissions, ease grid constraints, and lower costs by turning wasted heat into reliable energy?

Kelly: Every year, hundreds of terawatts of energy are lost as unharnessed heat from industry, buildings, and urban infrastructure. Capturing and reusing this “waste heat”—especially when paired with District Energy Systems (DES) and Thermal Energy Storage (TES)—can reduce carbon emissions, strengthen energy security, and deliver major operating savings (Waste not: Unlocking the potential of waste heat recoveryMcKinsey estimates up to €140B globally).

This study, undertaken by Inform Energy Solutions, and funded by the BC Net Zero Innovation Network and the Zero Emissions Innovation Centre (ZEIC), maps market-ready technologies, adoption trends, and opportunities in Metro Vancouver and beyond.

Modern DES can tap local, low-grade heat sources—sewage, cooling systems, data centres, and flue gas—and use TES to shift loads, reduce peaks, and improve resilience, all while lowering GHGs and operating costs. Metro Vancouver is already emerging as a North American leader in these approaches.

WT: Back to the latest study, what are the advantages of WET?

Bader: WET can cut greenhouse gas emissions by up to 80–90% compared to traditional HVAC systems that rely on natural gas when paired with clean electricity grids.

Return on investment is typically achievable within 3–7 years, especially in regions with supportive policies and higher energy costs.

Successful projects, such as Vancouver’s Neighbourhood Energy Utility (NEU), already show how WET can deliver reliable energy while reducing emissions by more than 60%.

Related

Study:

What you will learn

This study explores which waste heat recovery and TES technologies are market-ready in Canada, where adoption is already happening, and the policies, business models, and utility economics that unlock deployment. It also identifies opportunities to demonstrate new projects and build a stronger foundation for low-carbon district energy systems in Metro Vancouver and beyond.

Study

What you will learn

This report highlights:

  • How WET technology works and integrates into district energy systems.
  • The financial case for adoption, including operational savings and ROI.
  • Regulatory and funding landscapes that can accelerate adoption.
  • Risks and barriers—and how they can be mitigated with innovative financing, policy integration, and strong community engagement.








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