SHARC Energy founder Lynn Mueller reflected with pride on his company’s role in pioneering low-carbon heating systems for cities, as he stepped down as CEO and president into what he expects will be an active semi-retirement.

Mueller's decades-long career started off as a refrigeration mechanic. Since then, he has seen SHARC grow from serving a 60-townhome community in Vancouver to dozens of projects worldwide covering tens of millions of square feet.

The wastewater energy transfer (WET) technology he developed recycles the heat from sewage systems for buildings and communities. By replacing fossil fuel-powered sources for hot water and heating systems, carbon emissions are reduced and financial savings generated.

“We didn’t just develop a product, we had to develop an industry,” Mueller told Sustainable Biz Canada. “We were doing something nobody had really done before."

As Michael Albertson, the former president of SHARC Energy US, takes over the reins, Mueller is “ecstatic” about the company's future.

A short-lived retirement

SHARC grew out of a failed first attempt at retirement for Mueller, who previously served as the president and CEO of WaterFurnace International and the president of Vancouver-based Earth Source Energy Inc., a company that installs geothermal heat pumps for residential and commercial clients.

Left restless at home, he thought about how much hot water spirals down the drain from sinks and showers, presenting a “tremendous opportunity to find a way to get that energy back”.

He also had time to think about his three granddaughters, who will live in a warmer climate. The trillions of litres of hot water used daily could help alleviate the problem. An estimate by Water Canada states capturing heat from all of the country’s wastewater could offset as much carbon per year as taking 18.6 million cars off the road.

When he heard about a sewage heat recovery system in Beijing, he was fascinated enough to fly over and observe its workings. Seeing room for improvement, he founded SHARC in 2010 and drew up his own WET technology with the help of $40 million from investors. The secret behind his system, Mueller said, is the ability to filter wastewater.

“If you had just normal sewage water, if you tried to put that through a heat exchanger it would very, very quickly, probably within minutes, it would plug the heat exchanger.” The solution he devised was to temporarily filter solids out of the water.

Using wastewater for heating not only contributes to decarbonization, it means less heat enters the oceans, an environmental problem Mueller highlighted.

WET also pays for itself quickly — for every dollar to operate, it returns $4 in energy, he explained.

From 60 kilowatts to 200 megawatts

The company’s first commercial project was a 60-kilowatt-hour system for the Seven35 townhome community commissioned in 2012 on behalf of Vancouver developer Adera. One of the first carbon-free buildings in the city, according to Mueller, it was a springboard to larger work.

Now having over 50 installations worldwide — with 35 in Canada — SHARC has deployed over 200 megawatt-hours of energy generation to multiresidential, commercial, industrial and institutional customers.

Mueller spotlighted SHARC's False Creek Neighbourhood Energy Utility in Vancouver. Said to be the largest North American WET project, it has just under 10 megawatts of capacity after an expansion in July 2024. The City of Vancouver is working with SHARC to power the planned 23 million square feet of apartments with renewable energy before 2030.

Another innovation is creating the world’s first combined WET and geothermal system for two 20-storey multiresidential towers in New York City. All of the heating, cooling and hot water will be provided by the paired solution, pushing the towers to decarbonization.

SHARC is getting 10 calls a day from interested parties, Mueller said, and did significantly more business in 2024 than 2023.

The company’s sales pipeline as of Q3 2024 was valued at $17.1 million with 10 projects in its order backlog, “the greatest number of projects under order at any period” in SHARC’s history.

It generated $2.34 million in revenue for the nine months ended Sept. 30, a 147 per cent increase from the same period in 2023.

Mueller is confident SHARC is on the verge of turning more profitable years.

“We’re in pretty good position to ride out anything that’s going on,” including uncertainty about the sustainability sector with U.S. president-elect Donald Trump about to move back into the White House.

‘Absolutely thrilled’ about SHARC’s future

Having turned 70 years old recently, Mueller does not have “the same skip in my step I used to have”, hence the decision to step down. But the same jitters he had when he first retired have not gone away. “I’m extremely active, I’m still part of the mindset of the business.”

Passing on the torch to Albertson, someone he has known for 30 years, he is “absolutely thrilled” about the company’s next leaders. SHARC’s team is “coming together” and “I can’t wait to see they can do,” Mueller added.

SHARC’s new chief executive has a background in acquisitions, such as his role in the $364-million acquisition of WaterFurnace International by NIBE Group in 2014. When asked if Albertson’s appointment means SHARC will also be seeking acquisitions, Mueller replied rapid growth in new areas should be expected. But he anticipates development will likely be Albertson’s long-term priority.

“I know we’re getting a lot of offers coming in now to work with various companies to develop products and offerings. I think you’ll see a lot of co-development with established companies,” Mueller said.

While he stayed tight-lipped on upcoming projects, Mueller said his company is making inroads into the U.S. market, singling out the Northeast region. Its system, for example, is already installed at the DC Water Administrative Building in the U.S. capital.

Staying on as executive chair, Mueller expects to stay occupied as a product advisor and special envoy on behalf of Albertson.

Outside of SHARC, he plans to spend more time with his family, making up for lost time. The longest holiday he has enjoyed was five days in a row, something he wants to change.

His words of wisdom for younger people wanting to enter the business world: “Just bring a passion.”