Renewable solar energy storage facilities are attracting scientists’ attention since they can overcome the key issues affecting the shortage of energy. A nanofluid phase change material (PCM) is introduced as a new sort of PCM is settled by suspending small proportions of nanoparticles in melting paraffin. ZnO/α-Fe2O3 nanocrystals were prepared by a simple co-precipitation route and ultrasonically dispersed in the paraffin to be a nanofluid-PCM. The behaviors of the ZnO/α-Fe2O3 nanocrystals were verified by X-ray diffraction (XRD) analysis, and the average particle size and the morphology of the nanoparticles were explored by transmission electron microscopy (TEM). For the object of industrial ecology concept, aluminum-based waste derived from water-works plants alum sludge (AS) is dried and augmented with the ZnO/α-Fe2O3 nanocrystals as a source of multimetals such as aluminum to the composite, and it is named AS-ZnO/α-Fe2O3. The melting and freezing cycles were checked to evaluate the PCM at different weight proportions of AS-ZnO/α-Fe2O3 nanocrystals, which confirmed that their presence enhanced the heat transfer rate of paraffin. The nanofluids with AS-ZnO/α-Fe2O3 nanoparticles revealed good stability in melting paraffin. Additionally, the melting and freezing cycles of nanofluid-PCM (PCM- ZnO/α-Fe2O3 nanoparticles) were significantly superior upon supplementing ZnO/α-Fe2O3 nanoparticles. Nanofluid-PCM contained the AS-ZnO/α-Fe2O3 nanocrystals in the range of 0.25, 0.5, 1.0, and 1.5 wt%. The results showed that 1.0 wt% AS-ZnO/α-Fe2O3 nanocrystals contained in the nanofluid-PCM could enhance the performance with 93% with a heat gained reached 47 kJ.