SURREY, British Columbia — SHARC International Systems Inc. has advanced its role in low-carbon municipal infrastructure through its involvement in the City of Surrey’s District Energy Sewer Heat Recovery Project. Under the initiative, the company’s specialized wastewater energy recovery equipment will be deployed to harness thermal energy from municipal sewer flows, feeding low-carbon heat directly into Surrey’s expanding civic energy grid.
The installation will capture thermal energy that would otherwise be lost down the drain, redirecting it to support space heating and domestic hot water needs. The integration represents a significant milestone for municipal thermal energy networks, connecting infrastructure in Surrey’s Bridgeview neighborhood to the city’s central heating distribution network.
The project connects three primary infrastructure components: a dedicated sewer connection, pump station, and wastewater heat recovery facility situated in Bridgeview; an underground distribution network spanning approximately two kilometers; and a centralized heat pump facility located at the West Village Energy Centre in Surrey City Centre. By capturing the ambient warmth contained within raw municipal sewage, the system creates a continuous, locally sourced thermal loop capable of offsetting conventional energy demands across the municipal service area.
Technology Designed for District Energy
For the Surrey installation, SHARC Energy will combine customized shell-and-tube heat exchangers with its proprietary wastewater screening, pumping, and operational control systems. Raw wastewater poses distinct engineering challenges, requiring robust mechanical separation to prevent clogging and fouling while maximizing thermal transfer efficiency between the effluent and the clean water loops that supply the heat pumps.
To resolve these operating constraints, the equipment package is engineered to handle variable flow rates and fluctuating thermal characteristics typical of municipal collection networks. SHARC Energy’s scope of work extends across the entire deployment lifecycle, encompassing initial equipment delivery, mechanical start-up, complete system commissioning, and comprehensive on-site operator training.
Once operational, the installation will be supported by technical assistance underpinned by the remote monitoring and diagnostic capabilities embedded in the SHARC platform. This telemetry network allows engineers and municipal operators to track system pressures, fluid dynamics, screening cycles, and heat transfer efficiency in real time. Remote diagnostics enable preventative maintenance scheduling, reducing on-site intervention requirements and ensuring the continuous transfer of thermal baseload to the downstream network.
Because every wastewater catchment area exhibits different physical dynamics, each SHARC system is tailored directly to the specific wastewater quality, hydraulic capacity, and maintenance access parameters of the host site. This modular architecture allows municipal engineers, system designers, and utility owners to integrate wastewater heat recovery directly into existing district energy infrastructure or design it into greenfield expansions from the outset.
The Bridgeview facility acts as the primary recovery point, intercepting regional effluent flows and extracting thermal energy before returning the treated wastewater safely back to the municipal sewer main. The captured energy is then routed through roughly two kilometers of underground piping directly to the West Village Energy Centre, where centralized heat pump systems elevate the temperatures to levels required for commercial and residential space heating.
Commercial Focus and Capital Planning
Alongside its engineering execution in Surrey, SHARC Energy has implemented corporate initiatives aimed at enhancing sales execution, tightening operational delivery, and preserving a larger proportion of project economics. By maintaining closer oversight across all stages of project delivery, the company aims to protect and support its gross margin profile across its project pipeline.
This strategy centers on three operational priorities: expanding direct engagement with end customers and regional channel partners; enforcing disciplined project evaluation criteria prior to contract execution; and modernizing procurement, contracting, and long-term customer service workflows. By standardizing these operational functions, the company seeks to mitigate procurement cost volatility and ensure that system delivery timelines remain aligned with broader civil construction schedules.
Financial management remains closely linked to physical execution milestones across large-scale municipal contracts. Managing long-lead equipment procurement, installation phases, and site testing requires balanced cash flow management to match client billing schedules.
“As we execute the Surrey project we are focused on aligning working capital and cash flow with project schedules,” said Dungey. “We are working with third parties to explore capital solutions that can support delivery and sustainable growth.”
To sustain this delivery cadence, the company has engaged with financial partners to evaluate targeted capital arrangements. These initiatives are designed to provide the working capital liquidity necessary to fulfill large municipal contracts without straining ongoing operations, ensuring that delivery schedules, engineering resources, and supply chains remain stable throughout execution.
Corporate project management has also placed additional emphasis on managing its sales order backlog. As an alternative performance metric, the company tracks its sales order backlog to monitor committed orders moving through engineering, manufacturing, and site delivery phases, providing visibility into near-term operational demand and inventory planning.
Building on an Established District Energy Portfolio
The contract with the City of Surrey expands SHARC Energy’s existing footprint in high-capacity district energy networks across North America. The Surrey installation represents a multi-system deployment engineered to scale alongside the city’s urban density plans, providing modular capacity that can be expanded as heating demands grow in Surrey City Centre.
The Surrey deployment joins a growing list of notable district energy and community-scale developments utilizing SHARC Energy’s technology, including:
- Sen̓áḵw Energy System (Vancouver, British Columbia): Developed in partnership with Creative Energy, this district energy network serves the high-density Sen̓áḵw development, utilizing wastewater thermal energy recovery to provide low-carbon space conditioning and domestic hot water.
- False Creek Neighbourhood Energy Utility (Vancouver, British Columbia): One of North America’s earliest and most prominent municipal wastewater heat recovery deployments, utilizing raw sewage extraction to supply thermal baseload to surrounding residential and commercial developments.
- National Western Center (Denver, Colorado): A major district energy system serving an extensive campus redevelopment, representing one of the largest wastewater heat recovery installations in the United States.
- Alafia Development (Brooklyn, New York): An innovative community-scale thermal energy network integrated into a multi-building, master-planned residential redevelopment to lower operational emissions and deliver localized utility services.
Together, these projects demonstrate the flexibility of wastewater energy recovery across varying built environments, ranging from single high-performance buildings to campus networks and city-wide municipal utilities. The multi-system configuration selected by the City of Surrey reinforces the trend of local governments adopting wastewater heat capture as a central pillar of their long-term infrastructure and urban decarbonization frameworks.
Additional Project Information
The District Energy Sewer Heat Recovery Project forms an integral part of Surrey’s broader public utility infrastructure, designed to supply low-carbon thermal energy to multi-family residential towers, commercial properties, and institutional facilities situated throughout the downtown core.
Detailed records regarding the City of Surrey’s project specifications, municipal approvals, and procurement contract awards remain accessible through public city utility records and corporate disclosures filed by the company.
Financial disclosures and definitions concerning non-IFRS performance metrics—including the company’s Sales Order Backlog—are detailed within SHARC Energy’s Management’s Discussion and Analysis (MD&A) reports, including its Q2 2026 filings available on public registry databases.
About SHARC Energy
SHARC International Systems Inc. is an energy technology company specializing in the recovery of thermal energy from wastewater streams. Every day, substantial volumes of pre-heated water are discarded down drains from domestic, commercial, and industrial facilities. SHARC Energy manufactures and deploys mechanical systems designed to capture and recycle this latent thermal energy before it escapes into the surrounding environment.
The recycled energy is transferred into closed-loop systems to drive space heating, cooling, and domestic hot water generation across multi-family residential complexes, commercial developments, industrial facilities, and district energy utilities. By tapping into wastewater as a consistent, baseload thermal source, these systems reduce relying on fossil-fueled heating systems and alleviate stress on local electric grids.
SHARC Energy is publicly traded across multiple international markets, listing on the Canadian Securities Exchange under the ticker symbol SHRC, on the OTCQB Venture Market under the symbol INTWF, and on the Frankfurt Stock Exchange under the identifier IWIA. Detailed corporate filings, financial disclosures, and regulatory materials are accessible via the company’s profile on SEDAR+.
Corporate oversight is directed by the company’s executive team and Board of Directors, chaired by Fred Andriano.
Forward-Looking Statements
This news report includes forward-looking statements and forward-looking information within the meaning of applicable securities regulations. Statements concerning anticipated equipment deliveries, project execution schedules, operating performance of wastewater heat recovery systems, working capital management, future capital arrangements, and municipal energy network expansion constitute forward-looking information. Such statements are generally identified by terminology including "anticipate," "plan," "estimate," "expect," "may," "will," "intend," "should," and similar forward-looking expressions.
These forward-looking statements reflect current management expectations regarding future operational developments, technological performance, municipal infrastructure schedules, and general market conditions. However, they are fundamentally subject to business, economic, and competitive uncertainties. Actual results, operational performance, and delivery schedules may differ materially from those expressed or implied by such statements due to risks including project schedule adjustments, supply chain disruptions, system integration challenges, financing access, and regulatory developments.
The Canadian Securities Exchange has neither approved nor disapproved the contents of this news release and accepts no responsibility for the adequacy or accuracy of its contents.