Unlocking the Business Case for Wastewater Energy Transfer

Report
September 21, 2025

Turning Untapped Waste Heat into Reliable, Low-Carbon Energy

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, which mapped market-ready technologies and adoption trends across Canada. Together, the two reports provide both the technology landscape and the business case for harnessing waste heat—helping innovators, municipalities, and utilities accelerate the shift to low-carbon district energy.

Why It Matters

  • 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%.

Key Findings

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.

Take Action

Municipalities, utilities, and developers are at the forefront of Canada’s clean energy transition. With proven technology, clear financial benefits, and strong climate impact, WET offers a scalable pathway to decarbonize cities.

Download the full report below to explore the financial, environmental, and regulatory case for Wastewater Energy Transfer.


Download the Full Report