Significant energy efficiency gains in zones with concentrated activity from energy intensive industries can often be achieved by recovering and reusing waste heat between processing plants. We present a systematic approach to target waste heat recovery potentials and design optimal reuse options across plants in industrial zones. The approach first establishes available waste heat qualities and reuse feasibilities considering distances between individual plants. A targeting optimization problem is solved to establish the maximum possible waste heat recovery for the industrial zone. Then, a design optimization problem is solved to identify concrete waste heat recovery options considering economic objectives. The paper describes the approach and illustrates its application with a case study. (C) 2011 Elsevier Ltd. All rights reserved.