SHARC Energy Receives Record Purchase Order from City of Surrey for District Energy Sewer Heat Recovery Project
Revenue is expected in the second half of 2027 and into 2028, subject to delivery and contractual performance.
Sentiment and the balance of points
Rhea-AI Sentiment reads the wording of the document, how positive or negative its language is on a 1 to 5 scale. The balance of points shown with the takes weighs what the document actually discloses, so the two can disagree, for example when a trial that missed its main goal is described in upbeat language.
Rhea-AI Summary
SHARC Energy (INTWF) received a purchase order worth over $5 million from the City of Surrey for wastewater heat recovery. It is the company’s largest order, approximately twice the size of its previous largest order. SHARC will supply three SHARC 880 systems with combined thermal capacity of 6 megawatts for Surrey City Energy.
The order will add over $5 million to fourth-quarter 2026 Sales Order Backlog, a non-IFRS measure. Revenue is expected in the second half of 2027 and into 2028, subject to delivery and contractual performance. Equipment fabrication and delivery are planned for late 2027 to early 2028. The facility is designed for phased expansion to approximately 27 megawatts, but additional equipment requires future procurement. SHARC is exploring capital solutions with third parties to support delivery and growth, while seeking to align working capital and cash flow with project schedules.
How this balance works
Rhea-AI gives every point it takes from this document a weight. Minor counts 1, Moderate 3 and Major 9, so one Major point outweighs several Minor ones. The bar adds up the weights on each side, and when neither side holds more than 65% of the total the balance reads Mixed.
It reads the document as published, with the same rules for every company, and it does not look at what the market expected or at how the stock traded, so a point can be objectively good on a day the stock falls.
Rhea-AI Sentiment measures something else, the tone of the wording.
Hollow bars mark forward-looking points. How the balance works
Positive
- Major point. Forward-looking: it has not happened yet and may not happen.Over $5 million Surrey order will enter fourth-quarter 2026 backlog; approximately twice the previous largest order. 50% of market cap
- Moderate pointCapital solutions are being explored with third parties to support project delivery and growth.
- Minor point. Forward-looking: it has not happened yet and may not happen.Project revenue is expected in the second half of 2027 and into 2028.
- Minor point. Forward-looking: it has not happened yet and may not happen.Equipment fabrication and delivery are planned for late 2027 to early 2028.
- Minor point. Forward-looking: it has not happened yet and may not happen.Commercial plans aim to retain more project economics and support gross margins through improved sales execution.
Negative
- Minor point. Forward-looking: it has not happened yet and may not happen.Revenue recognition depends on project delivery and performance of contractual obligations.
- Minor point. Forward-looking: it has not happened yet and may not happen.Additional equipment for phased expansion to approximately 27 MW remains subject to future procurement.
AI-generated analysis. How Rhea-AI works. Not financial advice.
VANCOUVER, British Columbia, Oct. 22, 2026 (GLOBE NEWSWIRE) -- SHARC International Systems Inc. (CSE: SHRC) (FSE: IWIA) (OTCQB: INTWF) (“SHARC Energy” or the “Company”) is pleased to announce that, following a competitive procurement process, it has received a purchase order valued at over
Purchase Order Highlights
Revenue from the project is expected to be generated in the second half of 2027 and into 2028, based on the current project schedule. The City is installing a multi system of SHARC 880s to support a combined thermal capacity of 6 MW, processing approximately 12,000 litres of wastewater per minute. The facility is designed for phased expansion to approximately 27 MW as district energy demand grows, with any additional equipment subject to future procurement. With the project now secured by a purchase order, it will add over
The facility will recover thermal energy from a Metro Vancouver regional sewer main in Surrey’s Bridgeview neighbourhood. SHARC’s systems will screen the wastewater and transfer its heat to an ambient-temperature loop connecting to heat pumps at the West Village Energy Centre, approximately two kilometres away.
The City expects the facility to supply more than half of Surrey City Centre’s annual heating needs, reducing reliance on natural gas across a district energy network that already serves 49 buildings. The project is supported by the Government of Canada, the Province of British Columbia, Metro Vancouver and BC Hydro.
Equipment fabrication and delivery are planned for late 2027 to early 2028, followed by facility construction and commissioning under the City’s project schedule.
“This order is an important milestone for SHARC Energy, both in scale and in how we are developing our business,” said Shane Dungey, Interim Chief Executive Officer of SHARC Energy. “SHARC Energy is growing its business through direct relationships, as with the City of Surrey, and through its network of channel partners, to support its sales development objectives. Alongside executing this purchase order, our commercial focus will remain on customer engagement and disciplined management of the sales process.”
“Surrey’s project requires a system tailored to the scale and operating requirements of its district energy network,” said Michael Albertson, President of SHARC Energy. “The SHARC 880 platform allows us to configure our technology around those requirements, drawing on our experience supporting large wastewater energy recovery installations.”
Conceptual view of the proposed sewer heat recovery building, looking east from 110 Avenue, Surrey, B.C. Image: City of Surrey, District Energy Sewer Heat Recovery Project
Technology Designed for District Energy
For Surrey, SHARC Energy will integrate shell-and-tube heat exchangers with its wastewater screening, pumping and control systems to meet the project’s specifications. Its scope covers start-up, commissioning, operator training and technical support, backed by the remote monitoring and diagnostic capabilities of the SHARC platform.
With each SHARC system configured around the project’s wastewater, capacity and maintenance requirements, owners and engineers can incorporate wastewater heat recovery into both new and expanding district energy networks.
District Energy Sewer Heat Recovery Project location map: (1) sewer connection, pump station and sewer heat recovery facility in Bridgeview, where the SHARC systems will be installed; (2) approximately 2 km of underground heat distribution piping; (3) heat pump plant at the West Village Energy Centre in Surrey City Centre. Map: City of Surrey, District Energy Sewer Heat Recovery Project
Commercial Focus and Capital Planning
The Company aims to improve sales execution and retain a greater share of project economics, supporting its gross margin profile. This approach includes strengthening customer and channel partner engagement, disciplined project evaluation, and effective management of procurement, contracting and customer service processes.
“As we execute the Surrey project we are focused on aligning working capital and cash flow with project schedules.,” added Dungey. “We are working with third parties to explore capital solutions that can support delivery and sustainable growth.”
Building on an Established District Energy Portfolio
Surrey adds to SHARC Energy’s portfolio of major district energy projects, including Creative Energy’s Sen̓áḵw Energy System in Vancouver, the False Creek Neighbourhood Energy Utility, the National Western Center in Denver and the Alafia development in Brooklyn.
These projects reflect the application of wastewater energy recovery in individual buildings, community and district energy infrastructure. The City of Surrey order adds a multi-system installation to SHARC Energy’s district energy project portfolio, with modular and scalable configuration to meet the City’s sustainability goals.
Additional Project Information
Further information about the City’s project and contract award is available through:
¹ Sales Order Backlog is a non-IFRS measure. Please refer to the discussion of Alternative Performance Measures and Non-IFRS Measures in the Company’s Q2 2026 MD&A.
About SHARC Energy
SHARC International Systems Inc. is a leader in recovering thermal energy from the wastewater we send down the drain every day. SHARC Energy’s systems recycle this energy for heating, cooling and hot water production in commercial, residential and industrial buildings, as well as thermal energy networks commonly referred to as district energy.
SHARC Energy is publicly traded in Canada (CSE: SHRC), the United States (OTCQB: INTWF) and Germany (Frankfurt: IWIA). Additional Company information is available through its SEDAR+ profile.
Learn more about SHARC Energy: Website | Investor Page | LinkedIn | YouTube | PIRANHA | SHARC
ON BEHALF OF THE BOARD
Fred Andriano
Chairman
The Canadian Securities Exchange does not accept responsibility for the adequacy or accuracy of this release.
Forward-Looking Statements
Certain statements contained in this news release constitute forward-looking information. Forward-looking information is often, but not always, identified by words such as “anticipate,” “plan,” “estimate,” “expect,” “may,” “will,” “intend,” “should” and similar expressions.
Forward-looking information in this release includes statements regarding the expected revenue from the purchase order and timing of revenue recognition; its addition to the Company’s Sales Order Backlog; fabrication, delivery, construction, commissioning and operation of the facility; anticipated thermal capacity and contribution to Surrey City Centre’s heating needs; potential future facility expansion; expected improvements in the project’s gross margin profile; the Company’s direct sales strategy and pipeline development; anticipated project announcements before year-end; and potential financing and other capital solutions.
These statements are based on the Company’s current expectations and assumptions, including execution of the purchase order, the current project schedule, anticipated project costs, availability of equipment and materials, coordination with the City of Surrey and its contractors, completion of customer procurement and contracting processes, and access to suitable capital arrangements. The project schedule is controlled in part by third parties and may change.
Forward-looking information involves known and unknown risks, uncertainties and other factors that may cause actual results or events to differ materially from those anticipated. These include changes to project scope or timing, procurement and production delays, cost increases, customer decisions, availability and terms of financing, regulatory decisions, competitive factors, prevailing economic conditions and other factors beyond the Company’s control.
SHARC Energy believes the expectations reflected in this forward-looking information are reasonable, but no assurance can be given that they will prove correct. Such information should not be unduly relied upon. Forward-looking information represents the Company’s expectations as of the date of this release. The Company disclaims any intention or obligation to update or revise it, except as required by applicable securities legislation.
¹ Sales Order Backlog is a non-IFRS measure. Please refer to the discussion of Alternative Performance Measures and Non-IFRS Measures in the Company’s Q2 2026 MD&A.
Photos accompanying this announcement are available at:
https://www.globenewswire.com/NewsRoom/AttachmentNg/4f998a33-466c-4f52-bf50-988becf251ac
https://www.globenewswire.com/NewsRoom/AttachmentNg/c997b38a-a7b7-4319-8530-611ea6c1c531
For investor inquiries, please contact: SHARC International Systems Inc. Telephone: +1 (604) 475-7710 Email: ir@sharcenergy.com Website: www.sharcenergy.com For media inquiries, please contact: John Louis Fahie Marketing Director SHARC Energy Telephone: 604.475.7710 Ext. 109 Email: johnlouis.fahie@sharcenergy.com
FAQ
AI-generated questions and answers. How Rhea-AI works. Not financial advice.
How large is SHARC Energy’s City of Surrey purchase order?
The City of Surrey purchase order is worth over $5 million, making it SHARC Energy’s largest order and approximately twice its previous largest. SHARC will supply three SHARC 880 wastewater energy transfer systems with combined thermal capacity of 6 megawatts.
When does SHARC Energy expect revenue from the Surrey project?
SHARC Energy expects project revenue in the second half of 2027 and into 2028, based on the current project schedule. Revenue remains subject to project delivery and performance of contractual obligations.
What services will SHARC Energy provide for the Surrey heat recovery project?
SHARC Energy’s scope includes start-up, commissioning, operator training and technical support. It will integrate shell-and-tube heat exchangers with wastewater screening, pumping and control systems to meet the project’s specifications.