SHARC Energy Receives Record Purchase Order from City of Surrey for District Energy Sewer Heat Recovery Project

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 $5M from the City of Surrey for its District Energy Sewer Heat Recovery Project. The purchase order completed on October 22, 2026 is the largest in SHARC Energy’s history, approximately twice the size of the Company’s previous largest order. SHARC Energy will supply three SHARC 880 Wastewater Energy Transfer (“WET”) systems delivering 6 megawatts (“MW”) of thermal capacity to Surrey City Energy, the City’s district energy utility serving Surrey City Centre.

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 $5 million to the Company’s Sales Order Backlog in the fourth quarter of 2026, with the associated revenue subject to project delivery and performance of the Company’s contractual obligations.¹

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.”

Sewer-Heat-Recovery-building-rendering (1)

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.

sewer-heat-recovery-project

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.

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