The US Department of Energy identifies that about 1,500 trillion Btu of unrecovered waste heat is lost from exhaust gas annually [2]. With 60% of this unrecovered waste heat being at temperatures below 250°C, this "low temperature" waste heat has a high thermal value due to the latent heat of its water vapor content. This heat is lost due to technical complications of latent heat recovery from exhaust flows by using traditional types of heat transfer equipment. Almost all commercially available heat exchangers are designed for sensible heat. Even heat pipes, which use the phase change phenomenon, are typically used for sensible heat applications. Heat pipes have the highest heat transfer coefficient of 300W/(m²C). Such a high coefficient, however, cannot be achieved through sensible heat transfer processes. Nevertheless, it is possible to obtain the highest heat transfer rate by using heat pipes for heat recovery with condensation. In such applications, the latent heat of the phase change inside a heat pipe will be balanced by the latent heat of the water vapor from the phase change outside of the heat pipe during the cooling of the exhaust gas, and humidification of the heated gas. An advanced solution has been created to perform a multi-step latent heat transformation. It consists of heat pipes distributed over a low hydraulic resistant spiral channel and a special flow arrangement for split and integrate gas and water streams. A performed evaluation of a condensing heat exchanger concept has proved its feasibility for humid exhaust heat-water recovery.