Introduction
Next in our “Stumbling Along Electric Avenue” series we cover waste heat recovery and specifically waste heat to power. Every minute, smokestacks across Canada release plumes of hot air—energy that was paid for but never used. In fact, waste heat accounts for up to 50% of lost energy in industrial systems. Yet despite its enormous potential, waste heat recovery remains an overlooked hero in Canada’s decarbonization strategy.
So, inspired by a discussion with Janice Tran from Kanin Energy and by the possibility that reclaiming waste heat for energy presents we put together this article on a topic we don’t hear enough about.
From Kanin Energy “Waste heat is one of the most underutilized energy resources in North America. At Kanin Energy, we see waste heat recovery and waste heat to power not just as technologies, but as essential tools for heavy industry to meet their emission reductions targets. These solutions are ready now, they’re cost-effective, and they turn industrial emissions into clean, reliable power. It’s time that the policy environment recognizes these technologies as opportunities to bolster our industrial sector while also meeting our net-zero ambitions.”
What Is Waste Heat Recovery / Waste Heat to Power?
Waste Heat Recovery (WHR) involves capturing and reusing excess heat generated from industrial processes or combustion—heat that would otherwise be lost to the environment through flue gas, steam, or hot surfaces. The main goal of WHR is to reduce energy consumption by improving thermal efficiency: reusing energy instead of producing new.
Waste Heat to Power (WHP) is a specific application of WHR, where captured heat is converted into electricity. The main goal of WHP is to generate clean, reliable power from heat that would otherwise go to waste.
WHP technologies are already mature and commercialized, enabling rapid deployment of new generation capacity. WHP facilities can typically be deployed in 12 to 24 months and operate for over 20 years—making them a vital bridge solution to help meet Canada’s near-term climate goals.
Why It Matters for Decarbonization
Canada is committed to reaching net-zero emissions by 2050. To get there, energy efficiency isn’t optional—it’s foundational. WHR reduces the need for fossil fuel combustion by using energy that already exists in the system. It’s a form of passive efficiency: improving economics and slashing emissions without requiring significant behaviour change or new fuel inputs.
Achieving a net-zero electricity grid by 2035—a prerequisite for a net-zero economy by 2050—will require electricity generation resources that are:
- Non-emitting
- Cost-effective (low LCOE)
- Baseload-capable
- Deployable before 2035
Despite meeting all four criteria, WHP is currently excluded from Canada’s Clean Technology Investment Tax Credit (ITC).
Sectors with Huge Potential
WHR is especially transformative in energy-intensive sectors:
- Steel & Cement: Thermal losses from kilns and furnaces can be redirected to preheat materials or generate electricity.
- Data Centres: Excess heat can be redirected to nearby buildings or district energy systems.
- Hospitals & Commercial Buildings: Exhaust air and hot water systems can be recirculated via heat exchangers and thermal loops.
- District Energy Systems: Cities like Copenhagen heat entire neighbourhoods using industrial and municipal waste heat.
Canadian Context & Case Studies
Projects like the FortisBC district energy system being built in Vancouver, the NRGreen Loreburn heat recovery facility in Saskatchewan and Kruger’s heat recovery upgrades in Québec show that WHR isn’t just theoretical—it’s proven and scalable.
Still, Canada lags behind countries like Germany and the Netherlands, where WHR is embedded in both urban planning and industrial infrastructure.
Barriers—and the Way Forward
What’s holding us back?
- High capital costs
- Retrofit complexity
- Limited policy incentives and awareness
But the landscape is changing. With rising carbon pricing, industrial decarbonization funds, and growing support for circular energy systems, WHR is rapidly moving from fringe to frontline.
The Bottom Line
Waste heat recovery is not a silver bullet—but it is low-hanging fruit. It saves money, reduces emissions, and enhances system resilience. WHR and WHP are practical, proven, and underleveraged tools in Canada’s decarbonization toolbox. As we build the cleantech economy of the future, it’s time to give waste heat a seat at the table.