A SHARC Energy order worth more than $5 million from the City of Surrey became the company’s largest-ever purchase order on October 22, 2026. The contract covers wastewater heat recovery equipment for the city’s district energy network, with revenue expected in the second half of 2027 and into 2028 rather than immediately.
Key Takeaways
- The Surrey purchase order is approximately twice the size of SHARC Energy’s previous largest order.
- Three SHARC 880 systems are planned to provide a combined 6 megawatts of thermal capacity.
- Potential expansion to approximately 27 megawatts would require future procurement and is not part of the secured equipment order.
Table of Contents
- SHARC Energy order adds to future backlog
- How Surrey will recover sewer heat
- Delivery schedule and working-capital planning
- Conclusion
SHARC Energy order adds to future backlog
SHARC International Systems secured the purchase order following a competitive procurement process. The company expects it to add more than $5 million to Sales Order Backlog in the fourth quarter of 2026.
That backlog addition is not recognized revenue. SHARC identifies Sales Order Backlog as a non-IFRS measure, and the associated revenue remains subject to project delivery and fulfillment of contractual obligations. The distinction matters because the expected revenue window extends into 2028.
| Item | Details |
|---|---|
| Initial wastewater throughput | Approximately 12,000 litres per minute |
| Heat-transfer connection | Approximately two kilometres to the West Village Energy Centre |
| District energy utility | Surrey City Energy, serving Surrey City Centre |
| Project supporters | Government of Canada, Province of British Columbia, Metro Vancouver and BC Hydro |
How Surrey will recover sewer heat
The facility will recover thermal energy from a Metro Vancouver regional sewer main in Surrey’s Bridgeview neighbourhood. SHARC’s equipment will screen the wastewater and transfer heat to an ambient-temperature loop connected to heat pumps at the West Village Energy Centre.
SHARC’s modular wastewater heat recovery systems combine filtration and energy exchange, and the manufacturer describes installing multiple units in parallel for larger flows. For Surrey, the company will integrate shell-and-tube heat exchangers with screening, pumping and control equipment tailored to the district network.
The city expects the facility to supply more than half of Surrey City Centre’s annual heating needs, reducing reliance on natural gas. The district energy network already serves 49 buildings. The facility is designed for phased expansion as demand grows, but additional equipment would be subject to separate procurement.
Delivery schedule and working-capital planning
Equipment fabrication and delivery are planned for late 2027 to early 2028, followed by facility construction and commissioning under the city’s schedule. SHARC’s scope also includes start-up, operator training and technical support, with remote monitoring and diagnostic capabilities.
Interim Chief Executive Officer Shane Dungey said the company is working to align working capital and cash flow with project schedules and is exploring capital solutions with third parties. Those discussions do not constitute an announced financing arrangement.
The revenue and delivery timetable remains an expectation. SHARC cautioned that third parties partly control the project schedule and that procurement delays, cost increases, scope changes and financing availability could affect execution.
Conclusion
The Surrey contract establishes a record order, not an immediate revenue result. The next scheduled milestones are the fourth-quarter 2026 backlog addition and planned fabrication and delivery in late 2027 to early 2028.
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