passageway 306 to contact the baffle means 308 and tank 100 as the hot flue gases proceed to the outlet 110 the deflector 315 can be supported by suitable means in the lower area of the water heater and may be coated with a heat reflective material the flue gas venting conduit and the conduit for receiving incoming combustion air may be arranged to exchange heat and may utilize a secondary fan fig1 shows a plurality of baffle elements 308 attached to the exterior surface of the tank 100 attached for example by welding the baffle elements 308 are arranged to form a spiral around the tank with the desired pitch based upon the position angle and dimension of the baffle elements 308 which increases the amount of hot gases coming in contact with tank surface 100 through conduction of heat through the baffle elements 308 the baffle elements 308 cause the flue gases to flow in a spiral around tank 100 to the top of the tank the baffle elements 308 will preferably be angled downward directing the hot gases toward the surface of tank 100 also the baffle elements 308 will preferably be angled to direct flow to an adjacent element in an upward spiral the baffle means 308 can be attached to tank surface 100 by welding or other suitable means the number and dimensions of the baffle elements 308 will be determined based on the appropriate number necessary to most effectively extract the maximum heat from the hot gases and on the specific application the desired flow pattern water heater size and flue gas volumes the size of baffle elements 308 can vary but would typically be 1 to 6 inches long and 1 to 6 inches wide depending on the particular water heater size or.