Many industrial heating processes generate waste energy in textile industry; especially exhaust gas from the boiler at the same time reducing global warming. Therefore, this article will present a study the way to recovery heat waste from boiler exhaust gas by mean of shell and tube heat exchanger. Exhaust gas from boiler dyeing process, which carries a large amount of heat, energy consumptions could be decrease by using of waste-heat recovery systems. In this study, using ANASYS simulation performs a thermodynamics analysis. An energy-based approach is performed for optimizing the effective working condition for wasteheat recovery with exhaust gas to air shell and tube heat exchanger. The variations of parameters, which affect the system performance such as, exhaust gas and air temperature, velocity and mass flow rate and moisture content is examined respectively. From this study, it was found that heat exchanger could be reduced temperature of exhaust gases and emission to atmosphere and the time payback is the fastest. The payback period was determined about 6 months for investigated ANSYS. The air is circulated in four passes from the top to the bottom of the test section, in overall counter-flow with exhaust gas. The front area is 1720×1720 mm, the flow length 7500 mm, the inner and outer diameter of exhaust gas is 800 mm, the tube assembly consist of 196 tubes, the tube diameter is 76.2 mm, the tube thickness is 2.6 mm, the tube length is 4500 mm, the tube length of air inner and outer is 500 mm. The result show that, the boiler for superheated type there are exhaust gas temperature is 190°C, 24% the moisture content of fuel and there are palm kernel shell 70 tons day −1 which there are the high temperature after the heat exchanger, 150°C. It was occurred acid rain. The hot air from heat exchanger process can be reduced the moisture of palm kernel shell fuel to 15%.The fuel consumption is reduced by about 2.05% (322.72 kJ kg −1), while the shell and tube heat exchanger outlet exhaust gas temperature decreases from 190 to 150°C.