Objectives: The conventional boiler is used to produce vapour kinetic energy for use in manufacturing and sterilization, but it consumes a lot of oil. Production cost could be saved in an era of high oil price by economizing on fuel. Retrieving and recycling waste steam from the boiler could not only save oil used in production, but also reduce carbon dioxide emission. To achieve this goal, a new boiler system of heat recovery was proposed and its energy efficiency and reduction in carbon emission were investigated. Methods: A preheat barrel was installed around the boiler stack to retrieve waste heat from the stack discharge. The waste heat was used to heat cold water in the preheat barrel, and then the hot water was utilized. Results: The new boiler system saved every day an average of 45 liters of water and 41.7 liters of diesel fuel. The carbon emission reduction was as much as 115.518 kilograms every day, which meets the Kyoto Protocol standard. Conclusions: The new boiler system not only saves water and energy but also reduces carbon dioxide emission. The cost of this new system can be recovered in six months, which suggests that widespread deployment is feasible and beneficial.