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HEAT RECOVERY

Heat recovery captures and reuses heat that would otherwise be wasted from industrial and commercial processes—such as exhaust air, refrigeration systems, or wastewater. Across many Australian facilities, a large share of input energy is lost as heat. By integrating heat recovery technologies, this energy can be upgraded and reused for space heating, hot water, or process heat, reducing the need for additional energy generation and improving overall system efficiency.

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Technologies commonly used:

  • Heat exchangers (air-to-air, water-to-water)

  • Mechanical and high-temperature heat pumps

  • Heat recovery chillers

  • Thermal storage systems

  • Waste heat recovery units on exhausts and flues

 

Typical applications:

  • Space heating and domestic hot water in commercial buildings

  • Process heating in food, beverage, and manufacturing industries

  • Pool and water heating in aquatic centres

  • Pre-heating boiler feedwater or make-up air

  • Drying, washing, and sanitation processes
     

Key benefits:

  • Energy cost savings typically 20-50% depending on the application

  • Emissions reductions of 20-60% through reduced fossil fuel use

  • Efficiency improvements of 30-70% by capturing otherwise wasted heat

  • Payback periods often 2- 5 years for well-matched systems
     

For Australian businesses facing rising energy costs and increasing pressure to decarbonise, heat recovery offers a practical and proven solution. When combined with electrification strategies - such as replacing gas systems with heat pumps - it can significantly reduce operating costs and emissions while maintaining reliable performance.

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CASE STUDY: HVAC cooling via seawater heat exchangers for Walsh Bay Wharfs 4/5, Sydney

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Flexigen worked with Geoexchange Australia and other partners to install heat exchangers in Sydney Harbour to provide HVAC cooling to Wharfs 4 & 5 in the Walsh Bay Arts Precinct next to the Sydney Harbour Bridge. Learn more.

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A2EP is an independent, not-for-profit coalition of business and research leaders helping Australian businesses pursue a cleaner and more successful future by producing more with less energy.

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We acknowledge the traditional custodians across all the lands on which we live and work, and we pay our respects to Elders past, present and emerging.

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T: +61 438 921 703

E: a2ep@a2ep.org.au

© 2026 by Australian Alliance for Energy Productivity

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ABN: 39 137 603 993

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