Flue gas evaporation and condensing processes are investigated in a direct contact heat exchanger – condensing unit, which is installed after a furnace. By using equations describing processes of heat and mass transfer, as well as correlation coherences for determining wet gas parameters, a model is formed to create a no-filling, direct contact heat exchanger. Results of heating equipment modelling and experimental research on the gas condensing unit show, that the capacity of the heat exchanger increases, when return temperature of the district heating network decreases. In order to explain these alterations in capacity, the character of the changes in water vapour partial pressure, in the propelling force of mass transfer, in gas and water temperatures and in the determining parameters of heat transfer are used in this article. The positive impact on the direct contact heat exchanger by the decreased district heating (DH) network return temperature shows that introduction of the 4th generation DH system increases the energy efficiency of the heat exchanger. In order to make an assessment, the methodology suggested in the paper can be used in each particular situation.