A type of heating appliance that extracts so much of the available heat content from a combusted fuel that the moisture in the combustion gases condenses before it leaves the furnace. Also this furnace circulates a liquid to cool the furnace's heat exchanger. The heated liquid may either circulate through a liquid-to-air heat exchanger to warm room air, or it may circulate through a coil inside a separate indirect-fired water heater.
U.S. Department of Energy