Abstract: A system and method for recovering heat from waste fluids and gases and for improving the combustion of hydrocarbon fuels and the heat transfer within a boiler. The system comprises a controller, a distribution manifold, a plurality of heat recovery modules and a plurality of magnetic ionization modules. The system possesses the ability to monitor heated water demands within a building and to response by matching the demands with the most cost effective heated water supply source. The plurality of the heat recovery modules includes a flue heat recovery module, a waste water heat recovery module and a cooker heat recovery module for the recovery of heat from waste gases or liquids. The plurality of magnetic ionization modules includes a fuel magnetic ionization module and a water magnetic ionization module for charging fuel molecules to effect a more complete and efficient combustion and for charging the mineral molecules in water to prevent crystallization respectively.