The baking industry is considered as one of the major energy consuming food industries in North America. More than 40% of bakery fuel consumption is used to evaporate water in the processes [1]. In addition to the baking process’ vapor the oven stack gas contains water vapor from combustion products. Overall the content of water vapor in the typical oven stack gas is about 20% by volume. Most bakeries waste this vapor and its latent heat. Bakeries’ ovens have wide diversity in power and design. Off-the-shelve heat exchangers are not considered as cost effective equipment for stack gas cooling below gas’ dew point temperature. At typical oven stack gas composition water vapor condensation begins to condense at about 72° C. Not using the latent heat of stack water vapor and the heat from gas cooling from dew point temperature to ambient temperature results in low effectiveness of waste heat recovery. Mainly the effect from the recovery of stack gas cooling prior to condensation is considered as non cost effective and waste heat recovery is neglected.