WINNER - 2026 Outstanding Industrial Electrification Project
Congratulations to Alsco Uniforms Australia for winning the award for Outstanding Industrial Electrification Project in our 2026 Australasian Renewable Heat Awards.
The Awards recognise the innovative work out there which is leading the transition to renewable heat and setting the benchmarks for projects that follow.
Learn more about this winning project below.
Alsco Uniforms Heat Pump Pilot
Industry sector: Commercial laundry
Location: Alexandria, NSW
Completed: May 2026
Project partners:
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SEPAK
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DETA Consulting
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Rheem Australia
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EC Focus
Project summary
Alsco Uniforms’ Sydney (Alexandria) laundry has implemented an innovative renewable heat project that transforms wastewater from an operational challenge into a valuable energy resource. The project uses a high-temperature water-to-water heat pump to recover thermal energy from the site’s laundry wastewater stream, creating a circular energy system thatcaptures and upgrades waste heat that would otherwise be discharged tosewer.
The system extracts heat from wastewater generated by washing operationsand uses it to produce 55°C process hot water, displacing natural gas previously required for steam-based water heating. By maximising heat recovery through an optimised wastewater heat exchange system, the projectrecovers up to 470 kW of thermal energy and achieves heat pump efficiencies exceeding COP 5.
A key differentiator of the project is that it simultaneously addresses energy efficiency and trade waste compliance. Historically, wastewater left the process at temperatures exceeding trade waste limits, requiring cooling before discharge. The heat recovery system removes this excess heat,reducing wastewater discharge temperatures from approximately 42°C to aslow as 34°C, improving dissolved air flotation (DAF) performance and helpingfuture-proof the site against increasingly stringent trade waste temperature requirements.The project is expected to offset approximately 2,170 GJ of natural gas annually, reduce greenhouse gas emissions by up to 70 t CO₂-e per year, and demonstrate a replicable model for industrial renewable heat recovery in the laundry sector.
The heating challenge addressed by the project
Alsco Uniforms’ Alexandria laundry required a large volume of 55°C hot waterfor its industrial washing processes. Historically, this heat demand was met using direct steam injection (DSI) and steam-based hot water generation from natural gas-fired boilers. While reliable, this approach relied heavily on fossil fuels, exposed the site to rising and volatile gas costs, and resulted insignificant energy losses associated with steam generation, distribution and condensate management.
At the same time, the site discharged approximately 257 m³ of wastewater per day at temperatures between 40°C and 50°C, meaning substantial quantitiesof valuable thermal energy were being wasted.
The elevated wastewater temperatures also created operational challenges, as the site needed to cool wastewater before discharge to comply with trade waste temperature requirements and maintain effective operation of the dissolved air flotation (DAF) treatment system.
The challenge was to decarbonise hot water production while maintaining process reliability and reducing wastewater temperatures. Rather than continuing to generate heat through gas-fired steam production, Alsco implemented a high-temperature heat pump system that recovers heat from the wastewater stream and upgrades it to produce 55°C hot water. The heat pump operates primarily on electricity and delivers more than five units of thermal energy for every unit of electrical energy consumed under optimal conditions.
By shifting hot water generation from direct steam injection to heat recovery and electrification, the project displaces approximately 2,170 GJ of natural gasannually while taking advantage of lower-cost electricity consumption. The olution converts a waste heat stream into a renewable heat source, reduces greenhouse gas emissions, lowers operating costs, and decreases wastewater discharge temperatures to better meet current and future trade waste requirements.
The technologies featured in this project
The project replaces traditional steam-based hot water generation with a high-efficiency renewable heat recovery system centred on a Rheem RTWW264SDS-DQ-1 water-to-water high-temperature heat pump. The heat pump uses recovered energy from the laundry’s wastewater stream toproduce process hot water at up to 55°C, eliminating the need for direct steam injection (DSI) for routine hot water generation. The selected heat pump has a thermal capacity of approximately 292-338 kW and achieves acoefficient of performance (COP) of up to 5.3, meaning it can deliver more than five units of heat for every unit of electricity consumed.
A key part of the upgrade was the optimisation of the site's existing cold, tempered and hot water storage tanks. Rather than installing new storage infrastructure, the project integrates the heat pump with the existing tank network, allowing recovered heat to be stored and used efficiently throughout the laundry process. This approach minimised capital costs while maximising renewable heat utilisation.
The wastewater heat recovery system was also enhanced to maximise heat extraction from the waste stream. Modifications to the wastewater pit configuration improve temperature stratification and increase heat recovery potential, enabling greater energy transfer from wastewater before discharge.
Advanced level control, temperature monitoring and smart process controls were incorporated through a dedicated control system with flow meters, temperature sensors, automated control valves and a touchscreen HMI. The system continuously monitors tank levels, temperatures and heat recovery performance, automatically adjusting operation to optimise efficiency,maintain hot water availability and maximise heat recovery from wastewater.
The upgrade effectively replaces gas-derived thermal energy with renewable recovered heat, reducing natural gas consumption, lowering wastewater discharge temperatures, and creating a digitally controlled, highly efficient hot water generation system.
Results and benefits from this project
The project has successfully commissioned a high-temperature heat recovery system that captures waste heat from the laundry wastewater stream and uses it to generate process hot water, replacing a significant portion of gas-fired steam heating demand. The system also reduces wastewater temperatures prior to discharge, improving trade waste compliance and supporting more efficient operation of the site's dissolved air flotation (DAF) treatment process.
As the project is in its initial operational phase, independently verified energy and emissions savings are still being quantified. Comprehensive metering has been incorporated into the system, including flow, temperature and energy monitoring, to accurately measure heat recovery performance, electricity consumption and gas displacement. Data collection and verification are currently underway.
Based on the engineering design and feasibility assessment, the project is expected to:
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Displace approximately 2,170 GJ of natural gas annually through heat ecovery and electrification of hot water production.
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Reduce wastewater discharge temperatures from approximately 42°C to aslow as 34°C, helping meet current and future trade waste requirements.
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Deliver greenhouse gas emission reductions of up to 70 tCO₂-e per year under current grid conditions, with greater reductions as electricity generation continues to decarbonise.
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Improve overall site energy efficiency by recovering and reusing thermal energy that was previously lost to sewer discharge.
To ensure transparency and industry learning, all results are being independently validated through metered performance data. A detailed case study is being prepared in partnership with A2EP (Meet the Heatmakers) and a separate NSW DCCEEW case study is also being finalised. These publications will include verified performance outcomes and will be shared with the broader industry in due course.
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Special innovations in this project
This project is an innovative application of industrial-scale heat pump technology within a commercial laundry environment, demonstrating how low-temperature waste heat can be upgraded and reused to meet high-temperature process heating demands. While heat pumps are widely used in buildings, their deployment at this scale in an industrial laundry process is still relatively uncommon, making the project an important example of industrial electrification and renewable heat adoption.
A key innovation is the retrofit integration into an existing operating facility without the need for major process redesign or replacement of core infrastructure. The heat pump was designed to work with the site's existing cold, tempered and hot water tanks, pipework,
wastewater heat recovery equipment and electrical infrastructure. This reduced project cost, minimised operational disruption and created a model that can be replicated across other laundry facilities.
The project also incorporates a sophisticated load management and control strategy. Rather than operating as a standalone heating asset, the heat pump communicates with the site's existing water storage network and continuously responds to tank temperatures, water demand, wastewater temperatures andavailable heat recovery. This allows the system to automatically scale hot water production up or down to match process requirements while maximising heat recovery from wastewater.
Another innovative feature is the optimisation of the wastewater recovery system to use wastewater as both a heat source and a means of reducing trade waste temperatures. The system therefore delivers two outcomes fromthe same energy recovery process: renewable hot water production andreduced wastewater discharge temperatures.
By combining wastewater heat recovery, thermal storage, advanced controlsand electrified process heating into a single integrated system, the projectdemonstrates a practical pathway for industrial sites to decarburise heat whileimproving operational performance and regulatory compliance.
Funding received for this project
This project received support through the NSW Department of Climate Change, Energy, the Environment and Water (DCCEEW) via the Energy Savings Scheme (ESS) Market Stimulus Program, which was established toaccelerate the adoption of energy-efficient and decarbonisation technologies in priority sectors across New South Wales.
As part of the project, Alsco Uniforms secured a guaranteed fundingcontribution of $68,000 through the NSW ESS program, which directly reduced the capital cost of the heat pump installation.
In addition, the project is expected to generate NSW Energy Savings Certificates (ESCs) through the replacement of natural gas heating with a highly efficient heat pump system. Based on preliminary assessments and current certificate methodologies, the total support available through the ESS is anticipated to be in the range of $68,000 to $90,000, depending on the final quantity of certificates created and verified once operational performance data is confirmed.
The project also benefited from NSW Government support during the feasibility and development phase. A detailed heat pump feasibility study was undertaken with funding support from NSW DCCEEW, alongside technical guidance from DETA and collaboration and sharing of knowledge with the Australian Alliance for Energy Productivity (A2EP) and industry specialists.The study evaluated heat recovery opportunities, system design, energy savings, emissions reductions and integration into the existing laundry process, providing the foundation for project implementation.The combination of NSW Government funding, technical support and the ESS certificate framework helped accelerate the deployment of an innovative industrial heat recovery project that demonstrates the practical application of renewable heat technologies in the commercial laundry sector.