Waste heat recovery (WHR) technology captures and reuses heat generated by industrial processes that would otherwise be lost to the environment. By converting this heat into usable energy, companies improve efficiency, reduce fuel consumption, and lower greenhouse gas emissions. As industries focus more on sustainability and cost savings, waste heat recovery firms are emerging as attractive but often overlooked investment opportunities.
Why invest in waste heat recovery?
- Energy efficiency: WHR systems can reduce industrial energy costs by up to 30%.
- Emission reduction: Capturing waste heat lowers fossil fuel use and carbon footprint.
- Wide application: Applicable across manufacturing, power generation, cement, steel, and chemical industries.
- Government incentives: Energy efficiency programs and carbon regulations drive adoption.
Leading publicly traded waste heat recovery companies
1. Alfa Laval AB (STO: ALFA)
- Provides heat exchangers and recovery systems widely used in industrial WHR applications.
- Strong presence in process industries, HVAC, and energy sectors.
2. SPX FLOW, Inc. (NYSE: FLOW)
- Manufactures thermal equipment and heat recovery solutions for food processing, power, and manufacturing.
- Invests in energy-efficient product lines with growing WHR capabilities.
3. ANDRITZ AG (VIE: ANDR)
- Offers waste heat recovery boilers and energy recovery systems for industrial clients.
- Active in pulp and paper, metals, and energy industries.
4. John Wood Group PLC (LSE: WG)
- Engineering and consulting services including waste heat recovery system design and implementation.
- Supports decarbonization projects for industrial customers.
5. Siemens Energy AG (ETR: ENR)
- Develops combined heat and power (CHP) and WHR technologies for power plants and industrial facilities.
- Focuses on integrating waste heat into energy systems.
6. Cummins Inc. (NYSE: CMI)
- Supplies engines with integrated WHR technologies and exhaust heat recovery units for heavy equipment and power generation.
ETFs with energy efficiency and industrial technology exposure
- iShares Global Clean Energy ETF (ICLN)
- Invesco WilderHill Clean Energy ETF (PBW)
- First Trust Industrial Technology ETF (FTXL)
Investment considerations
- Industry adoption: Growth depends on industrial CAPEX cycles and energy prices.
- Technology integration: Successful WHR requires custom engineering tailored to facility needs.
- Regulatory incentives: Energy efficiency standards and carbon pricing improve ROI.
- Competitive landscape: Niche market with specialized engineering firms and equipment manufacturers.
Waste heat recovery companies are quietly enabling industries to reduce costs and emissions while improving sustainability. Investors targeting firms with proven WHR technologies and diversified industrial client bases can uncover hidden opportunities in the energy efficiency transition.