Industry Need
Australia’s net-zero and circular-economy commitments are accelerating an economy-wide shift away from fossil-fuels. Industries, businesses, public facilities and governments are seeking cheaper, lower-carbon options as energy prices and emissions constraints bite. A sizeable share of energy is tied to water heating (e.g., domestic hot water is a notable fraction of household energy use), and much of that heat is discharged to sewer (a typical 40 °C shower can enter the drain ~30 °C). Comparable waste-heat streams exist across commercial kitchens and healthcare, industrial users (brewing/food), and even within wastewater assets themselves. Utilities are increasingly expected to partner across precincts to turn these local inefficiencies into visible decarbonisation wins that strengthen community relationships.
Sewer heat recovery (SHR) captures low-grade heat already present in wastewater via heat exchangers and heat pumps, converting it into usable energy for nearby thermal users (e.g., pools, hospitals, aged-care, mixed-use precincts). Done well, it can displace gas/grid electricity, advance circular-economy goals (resource recovery, local reuse) and support “regional prosperity” ambitions through community-facing partnerships.
Despite overseas deployments, Australian uptake is patchy. Tasmania shows effluent-side use can work, but arrangements are ad-hoc and hard to replicate. Early screening is hampered because temperature is rarely monitored alongside flow. Context is also shifting quickly: the rapid growth of data centres and other heat-intensive facilities (as heat sources) can raise local wastewater temperatures and improve load match, potentially tipping feasibility in some locations. Trade-waste temperature limits and future recycled-water plans (which may change effluent availability) add further complexity.
Research is needed to develop a shared, Australian view that covers the following knowledge gaps:
- Applicability: how climate, network context (influent vs effluent), proximity and seasonality affect feasibility.
- Scale & fit: how much usable heat is realistic in typical contexts, which offtakers are most credible and under what conditions.
- Operational risk: potential unintended consequences for sewers and treatment and simple early checks.
- Early economics: which inputs and typical ranges matter at a concept stage so teams can test viability consistently.
- Social licence & delivery: how to engage partners/the public, and who usually does what without locking in the wrong arrangements.
With this foundation, water utilities can focus feasibility effort on the best contexts, reduce risk to networks and treatment, and move promising cases toward funding and delivery.
Objective
Determine Australia’s practical potential for sewer heat recovery and equip utilities with a common early-screening approach and evidence to progress promising opportunities into specific case development.
WaterRA contact: Vincent Bianchini
Budget estimate: Seeking $15-20k per partners with potential for industry cash to be matched by RACE for 2030
Closing date: 30 March 2026