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Module 4 · Unit 5

Waste heat opportunities, monitoring, and applied integration scenario

Read the unit content below, then use the case studies and key terms to review what you have learned.

Unit reading

Learning Objective

By the end of this session, learners should be able to:

  • identify common industrial and urban surplus-heat sources;
  • screen a potential source using temperature, capacity, timing, distance and reliability;
  • distinguish between direct use, heat-pump boosting, return-line use and storage;
  • identify the main monitoring points and operating risks;
  • recommend whether a source should be investigated further, rejected or escalated for detailed study.

Why recover heat that is already available?

District-heating systems can use heat that would otherwise be released to:

  • air;
  • water;
  • cooling towers;
  • wastewater;
  • exhaust or ventilation air.

Recovering suitable surplus heat can:

  • displace higher-carbon heat production;
  • reduce local heat rejection;
  • improve energy-system efficiency;
  • support lower-temperature heat networks;
  • diversify the network’s heat-source mix.

Recovery should not reduce incentives to improve the source process itself.

Recovered heat is not automatically renewable, low-carbon or low-cost.

Waste heat, surplus heat and recovered heat

Surplus heat

Heat leaving a process that is not currently used by that process.

Waste heat

A common term for heat that would otherwise be rejected to the environment.

Recovered heat

Surplus heat that is captured and put to a useful purpose.

Screening principle

Use the heat hierarchy:

  • prevent unnecessary heat generation;
  • improve the source process;
  • reuse heat on-site where practical;
  • recover remaining heat for nearby users or a heat network.

Heat export should use genuinely available surplus heat—not create additional energy consumption merely to produce saleable heat.

Six questions for screening a heat source

  • TemperatureIs the source hot enough for direct use (through heat exchanger with no temperature boosting), or is a heat pump required?
  • CapacityHow much technically recoverable power and usable annual energy are available under normal and part-load conditions?
  • AvailabilityWhen is the heat available, and does that match network demand?
  • LocationWhat pipe route, distance and planning constraints apply?
  • Reliability and lifetimeWill the process operate consistently for the investment period?
  • Carbon and system benefitWhat existing heat production will actually be displaced?

Does the source temperature match the network?

Source temperature high enough

If the source temperature is high enough (e.g., industrial flue gases or waste-to-energy), it can be transferred to the network through a heat exchanger.

Source temperature too low

Urban sources like data centers or sewage systems often provide low-grade heat. When the source temperature is lower than the network's required flow, large-scale heat pumps are commonly required to raise the temperature to a usable level.

Where can recovered heat enter the system?

Supply-line integration

Used when the recovered-heat system can deliver the required supply temperature.

Possible benefit: directly displaces central heat production.

Important checks:

  • temperature control;
  • pressure compatibility;
  • network flow direction;
  • plant coordination.

Return-line integration

May be used when the source can raise return-water temperature but cannot meet supply temperature.

Possible benefit: preheats water before central generation.

Possible disadvantage:

  • raises plant return temperature;
  • may reduce condensing, heat-pump or CHP performance;
  • may reduce network ΔT.

Return-line integration is project-specific rather than inherently good or bad. Assess the effect on plant efficiency, network ΔT, hydraulic capacity and dispatch before selecting it.

When storage supports recovered-heat integration

Storage can help when:

  • source output varies;
  • heat demand occurs later than source availability;
  • the source has a minimum stable operating level;
  • heat-pump operation should be shifted;
  • short-term network constraints limit immediate export.

Monitor:

  • charging and discharging power;
  • storage temperatures;
  • state of charge;
  • standing losses;
  • source curtailment;
  • backup heat use.

Storage shifts heat in time. It does not solve insufficient annual energy, unsuitable temperature or long-term source unreliability.

Initial surplus-heat screening matrix

CriterionQuestions to ask
TemperatureMinimum, normal and maximum source temperature?
CapacityRecoverable kW or MW? Annual MWh?
AvailabilityHours per day, days per year and seasonal pattern?
Demand matchIs network demand present when the source operates?
DistancePipe length, route and elevation?
ReliabilityPlanned shutdowns, process variability and expected site lifetime?
Heat qualityClean water, contaminated water, air or process gas?
Integration needHeat exchanger, heat pump, storage or backup?
Carbon benefitWhich existing heat source will be displaced?
Commercial interfaceOwnership, pricing, guarantees and maintenance responsibility?
Economic potentialCalculate the technically recoverable and usable heat, then assess whether its recovery is economically viable.

Where can industrial surplus heat be found?

Potential sectors include:

  • steel and non-ferrous metals;
  • cement, glass and ceramics;
  • refineries and chemicals;
  • food and beverage processing;
  • pulp and paper;
  • textiles;
  • refrigeration and cold storage;
  • manufacturing cooling-water systems;
  • compressors and compressed-air systems;
  • industrial wastewater.

Source forms

flue gas;

cooling water;

hot product or process streams;

condensate;

exhaust air;

refrigeration condenser heat.

Typical strengths and limitations of industrial sources

Possible strengths

  • high thermal capacity;
  • long operating hours;
  • relatively stable output;
  • existing heat-rejection systems;
  • potentially useful temperatures.

Possible limitations

  • process shutdowns;
  • fluctuating production;
  • contaminated or corrosive fluids;
  • fouling and scaling;
  • distance from the network;
  • source-site closure risk;
  • industrial production takes priority over heat export.

Common urban surplus-heat sources

Potential sectors include:

  • data centres;
  • supermarket and cold-store refrigeration;
  • commercial-building cooling systems;
  • wastewater and treated sewage;
  • metro and rail ventilation;
  • hospitals and laboratories;
  • ice rinks and leisure centres;
  • power and telecommunications infrastructure.

Typical characteristics:

  • low or medium temperature;
  • distributed locations;
  • strong dependence on heat pumps;
  • relatively close to urban heat demand;
  • potential for year-round operation.

Data-centre heat reuse

Heat may be recovered from:

  • air-based cooling systems;
  • chilled-water circuits;
  • direct liquid cooling;
  • immersion-cooling systems.

Key screening questions

What temperature is available?

Is the cooling load stable throughout the year?

Is a heat pump required?

Is the heat-network connection close enough?

Can the data centre reject heat independently if the network is unavailable?

Who owns and operates the recovery equipment?

How will source availability be guaranteed?

Main principle

The district-heating connection must never compromise data-centre cooling or server availability.

Wastewater heat recovery

Wastewater can provide a comparatively stable low-temperature source.

Possible recovery locations include:

  • building sewer connections;
  • main sewers;
  • wastewater-treatment plants;
  • treated effluent discharge.

A typical system includes:

  • wastewater or effluent heat exchanger;
  • cleaning or fouling-control system;
  • heat pump;
  • pumps and controls;
  • backup heat source.

Key risks

  • fouling and blockage;
  • corrosion;
  • variable wastewater flow;
  • maintenance access;
  • hygiene separation;
  • permitted minimum discharge temperature.

Normal operation or possible fault?

Possible warning patterns

  • source available but no heat exported;
  • export command active but no flow;
  • high flow with little transferred heat;
  • heat pump running with low thermal output;
  • unstable export temperature;
  • frequent start/stop cycling;
  • storage charging and discharging simultaneously;
  • source curtailed while backup heat is operating.

First checks

  • confirm operating mode;
  • review source-availability signal;
  • compare command and equipment response;
  • check temperatures on both sides of the heat exchanger;
  • verify flow direction;
  • confirm whether storage is charging or discharging.

A pattern is abnormal only when it differs from the approved control sequence.

What should the monitoring system show?

Source availability

  • available/not available;
  • maximum recoverable power;
  • planned shutdowns.

Delivered heat

  • thermal power;
  • energy;
  • source and delivery temperatures;
  • flow rate.

Conversion equipment

  • heat-pump electrical input;
  • heat output;
  • COP;
  • start count and run hours.

Network response

  • supply and return temperatures;
  • pressure and flow;
  • backup-generation output;
  • storage state of charge.

Environmental reporting

  • displaced heat source;
  • electricity used for recovery;
  • calculated emissions impact;
  • method and assumptions.

Carbon benefit should be calculated using an agreed methodology—not inferred from heat-meter data alone.

Applied case: data-centre heat for an urban network

Source

source-side recoverable heat: 2 MW

source temperature: 30°C

availability: 24 hours/day

network supply/return: 70/40°C

connection distance: 800 m

Proposed arrangement

  • source-side heat exchanger;
  • large heat pump;
  • supply-line connection;
  • short-term thermal storage;
  • independent data-centre heat rejection.

Questions

Can the heat be used directly?

Why is a heat pump required?

What data are needed to estimate COP and annual delivery?

What happens when network demand is low?

Which party must maintain backup heat rejection?

What evidence is needed before approving the project?

Five rules for recovered-heat integration

  • Reduce and reuse heat on-site first.Export genuinely available surplus heat.
  • Screen the source before selecting equipment.Temperature, capacity, timing, distance and reliability determine viability.
  • Choose the connection for the whole system.Direct use, heat-pump boosting, return-line integration and storage have different effects.
  • Protect both primary activities.The source process and the heat network require backup and fail-safe operation.
  • Measure availability and delivered performance.Temperatures, flow, power, equipment status and operating mode must support commercial and technical verification.

Waste heat case studies

Case Study Database: District Heating Innovation

A reference collection of real-world projects for student research.

Each entry gives the project name, core parameters, and a link to find more detail.

Several projects appear in more than one section (e.g., Vojens, Braedstrup, Varanto) because real DH decarbonisation projects typically combine storage, renewables, and waste heat rather than using a single technology in isolation - worth highlighting when comparing case studies.

Waste Heat Integration into District Heating

Meta (Facebook) Data Centre Surplus Heat - Odense, Denmark

Denmark's largest heat-pump-based waste-heat recovery scheme: low-grade heat (-27 °C) from Meta's hyperscale Tietgenbyen data centre is boosted by large ammonia heat pumps to 70-75 °C DH supply temperature. Phase 1 (2020) delivered-24 MW/ -100,000-125,000 MWh/yr to - 7,000 homes; full build-out targets -45 MW and 215,000 MWh/yr, covering over 12,000 homes.

https://www.ramboll.com/en-us/projects/energy/meta-surplus-heat-to-district-heating

and

Surplus heat from data centre used for district heating

Envases Industrial Waste Heat - Odense, Denmark

Follow-on project to the Meta case: surplus heat from industrial curing/drying ovens at a metal-can manufacturing plant (Envases) is now captured and exported into Fjernvarme Fyn's DH network, illustrating replication of a data-centre heat-recovery business model to conventional industry.

Closing the Loop: HOW INDUSTRIAL-UTILITY SYMBIOSIS IN ODENSE FORGES A BLUEPRINT FOR DECARBONIZATION

Varanto Cavern Storage + Waste-to-Energy Waste Heat - Vantaa, Finland

As well as being a TES case study (Section 1), Varanto is designed specifically to store surplus/waste heat from Vantaa's waste-to-energy incineration and low-price-hour electric boilers - a good cross-cutting example linking waste heat recovery with seasonal storage.

Varanto – The Cavern Thermal Energy Storage

Stockholm Data Parks - Sweden

A city-wide programme in which Stockholm Exergi pays data-centre tenants for their waste heat, integrating multiple facilities' surplus heat into the metropolitan DH grid; a useful example of a commercial/contractual model for waste-heat sourcing (vs. a single flagship project).

Home

ArcelorMittal Steel Annealing Waste Heat - Saint-Chely-d'Apcher, France

Recovers heat at -1,000 °C lost from a steel annealing oven and feeds it into both the municipal DH network and the plant's own process/space heating; project delivered by Kyotherm with Schneider Electric, saving -4,000 t CO2/yr.

https://www.renewablethermal.org/wp-content/uploads/2022/03/Press-release-Kyotherm-Waste-Heat-project.pdf

LUMI Supercomputer Waste Heat - Kajaani, Finland

Waste heat from the LUMI pre-exascale supercomputer (hosted by CSC - IT Center for Science) is recovered and fed into the local district heating network, an example of waste heat recovery from HPC/data infrastructure outside a major metropolitan area.

https://www.datacenterdynamics.com/en/news/lumi-supercomputer-use-district-heating-cooling/

Key terms glossary

Waste-heat terminology and opportunity assessment

Waste heat, excess heat, surplus heat and recovered heat

Thermal energy leaving a process, installation or service activity that is not used for its primary purpose. “Waste heat”, “excess heat” and “surplus heat” are not fully interchangeable in engineering, contracts and legislation, so the intended meaning should be stated. Once useful heat has been captured and delivered to another process or network, “recovered heat” is usually the clearest operational term. It is not automatically renewable, low-cost, low-carbon or continuously available.

Unavoidable waste heat and cold

A regulatory accounting concept for heat or cold generated as a by-product that would otherwise be dissipated and that cannot reasonably be avoided or used on site after appropriate efficiency and heat-integration measures. Eligibility depends on the applicable jurisdiction and methodology. The broader engineering inventory of rejected heat can therefore be larger than the amount eligible to be reported as “waste heat and cold” under energy-policy rules.

Waste-heat source and heat sink

The source is the process or system from which heat can be recovered; the sink is the network, building or process that can use it. Integration requires compatibility in temperature, capacity, timing, location, reliability and commercial conditions. A large source is not a viable opportunity unless a suitable sink exists or can be created.

Theoretical, recoverable, usable and economic potential

Theoretical potential is the total heat rejected within a stated boundary. Technically recoverable potential accounts for access, heat-exchanger limits, process constraints and feasible recovery equipment. Usable or integrable potential additionally accounts for sink temperatures, timing, connection losses, upgrading and network constraints. Economic potential is the portion that meets specified cost, risk and investment criteria. These levels must not be reported as if they were equivalent.

Recoverable thermal power and recoverable energy

Recoverable thermal power is the instantaneous or rated rate of useful heat recovery, expressed in kW or MW at stated conditions. Recoverable energy is the heat available over a period, such as MWh per year, after applying the source profile and availability. Annual energy cannot be inferred reliably from peak power without operating-hour and part-load data.

Heat-recovery hierarchy and competing on-site use

A decision sequence that first avoids unnecessary heat generation, improves process efficiency and considers feasible on-site heat recovery before exporting residual heat. External district-heating use should be compared with internal process heating, preheating, drying, absorption cooling and other higher-value uses. The hierarchy is especially important when determining whether heat is genuinely unavoidable for regulatory accounting.

Waste-heat source categories

A practical classification including industrial processes, data centres, commercial refrigeration, wastewater systems, power generation, waste-to-energy plants, electrolysers and other urban infrastructure. Categories help organise screening, but each site must be characterised by measured temperature, flow, operating schedule, process constraints and ownership rather than by generic assumptions.

Heat-recovery feasibility assessment

A structured technical, economic, environmental and contractual evaluation of a candidate source. It should cover recoverable power and energy, temperature profiles, source and demand coincidence, connection route, return-temperature compatibility, heat-pump and auxiliary energy, storage and backup needs, process risks, metering, permissions, ownership, emissions accounting, investment performance and uncertainty. A screening study should clearly separate measured data from estimates and assumptions.

Common waste-heat opportunities

Industrial excess heat

Recoverable heat from process streams, cooling water, condensate, exhaust gases, furnaces, compressors or refrigeration within manufacturing and processing facilities. Temperature and continuity vary widely, and recovery can affect the host process, product quality, pressure levels, maintenance or future production. Pinch analysis or another systematic process-integration method should be used where appropriate before assuming heat is available for export.

Data-centre waste heat

Heat removed from information-technology equipment and supporting systems by the data-centre cooling system. Available temperature depends strongly on air cooling, rear-door heat exchangers, direct-to-chip liquid cooling, immersion cooling and the selected recovery boundary. IT load can provide a comparatively continuous source, but heat quantity, temperature, free-cooling operation, redundancy rules and future computing load must be verified. Heat pumps are often needed for conventional district-heating temperatures.

Supermarket and refrigeration-system heat

Condenser heat rejected by refrigeration equipment serving supermarkets, cold stores, ice rinks or industrial cooling processes. Output follows the cooling load and includes both extracted cooling energy and compressor input. Availability can be high in warm periods when district-heating demand is low, so local sinks, storage or low-temperature networks may be important. Refrigerant system design and heat-recovery pressure levels must remain compatible with safe refrigeration operation.

Wastewater and sewage heat recovery

Recovery of sensible heat from raw wastewater, sewer flows, treatment-plant effluent or sludge-processing systems, normally through a heat exchanger and heat pump. Temperature and flow are site- and season-specific. Design must consider minimum sewer temperature, biological-treatment effects, hydraulic restrictions, fouling, corrosion, maintenance access, environmental permits and whether heat extraction is located upstream or downstream of treatment.

Power-generation, CHP and waste-to-energy heat

Potential recovery from condenser systems, flue gases, cooling circuits or other residual streams associated with electricity or waste treatment. Useful heat deliberately produced by cogeneration is not automatically “waste heat”. Accounting and feasibility must distinguish useful cogenerated heat from genuinely residual heat, and must consider flue-gas condensation, corrosion, emissions controls, plant dispatch and the long-term role of the host facility.

Electrolyser and hydrogen-production heat

Heat generated by electrolysis stacks, power electronics, gas compression and auxiliary cooling systems. Its temperature and recoverable share depend on electrolyser technology, operating pressure, load factor and cooling design. The opportunity may be attractive near heat networks, but project appraisal must reflect uncertain hydrogen-production schedules, electricity-market operation and possible changes in plant scale.

Urban-infrastructure and service-sector heat

Heat rejected by metro systems, hospitals, laundries, commercial buildings, telecommunications facilities, transformer stations, cooling plants and similar urban activities. Individual sources may be smaller or spatially distributed, so aggregation through an ambient loop, local low-temperature network or shared heat pump may be more suitable than a long dedicated connection to a high-temperature network.

Source-continuity and decommissioning risk

The risk that recoverable heat declines or disappears because the host process changes, improves efficiency, relocates, closes or changes operating hours. Heat-recovery infrastructure often has a longer lifetime than the source contract. Feasibility studies and agreements should therefore consider alternative sources, asset reuse, termination provisions, stranded-asset exposure and realistic residual value.

Technical integration and source-side equipment

Direct use of recovered heat

Use of a source at a sufficient temperature to meet the sink requirement without a heat pump. “Direct” refers to temperature upgrading and does not necessarily mean direct hydraulic mixing: a heat exchanger may still separate process and district-network fluids. Pumps, controls and temperature losses remain relevant.

Heat cascading

Sequential use of heat by progressively lower-temperature sinks, for example process heating followed by district heating and then low-temperature preheating. Cascading can improve overall exergy use, but the sequence must respect source ownership, simultaneous demand, contamination barriers and the effect of each use on the temperature available to the next sink.

Heat upgrading / temperature boosting

Raising recovered heat to a useful delivery temperature, most commonly with a heat pump. Upgrading requirements depend on source temperature, network supply and return conditions, heat-exchanger approach temperatures and operating mode. A heat pump is not always required, and it is not automatically the largest capital-cost item; connection pipework, civil works and source modifications can dominate.

Hydraulic separation

Separation of the source, recovery and district-network fluid circuits by heat exchangers or hydraulic interfaces. It protects pressure regimes and water quality and allows independent flow control, but adds approach-temperature loss and pumping demand. The need for separation depends on network rules, fluid compatibility and safety requirements.

Connection and injection point

The physical location and hydraulic arrangement where recovered heat enters the district network or plant. Options include connection to supply, return, a local branch, a generation plant header or an ambient loop. The preferred point depends on source temperature, network pressure, flow direction, return-temperature effects, local capacity, control authority and the ability to prevent unwanted circulation.

Network temperature compatibility

The ability of a source to deliver useful heat at the required network injection temperature while accepting the available return temperature. Compatibility varies by season and operating state. A source may be usable directly at low network temperatures but require a heat pump, cascading connection or return-line integration at higher temperatures.

Source curtailment / rejected recoverable heat

Potentially recoverable heat that cannot be accepted because demand, storage capacity, connection flow, temperature conditions or equipment availability are insufficient. Curtailment should be quantified separately from unavoidable technical losses. It is a key indicator for storage sizing, dispatch optimisation and contract design.

Backup capacity and peak-load capacity

Backup capacity covers unplanned or planned unavailability of a main source, while peak-load capacity covers demand above the economical or technical output of base-load sources. The functions can be provided by the same asset but are conceptually different. Backup and peak equipment may use electricity, renewable fuels, stored heat, conventional boilers or other sources; it is not necessarily gas-fired.

Commissioning and acceptance testing

Planned verification that the recovery system is installed, configured and able to meet specified hydraulic, thermal, electrical, control, metering, safety and communication requirements. Tests should cover normal and failure modes, source and network interlocks, heat-meter data, temperature and flow performance, alarms, backup operation and documentation. Acceptance criteria and witness responsibilities should be agreed before testing begins.

Download the original materials

The practice-question document includes answers and explanations for self-study.

When you are ready, take the Unit 5 quiz.

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