An experimental and theoretical investigation of the utilization of finned tube compact heat exchanger for a heat recovery steam generator (HRSG) to recover both sensible and latent heat is presented in this paper. The heat transfer and pressure drop characteristics of the fin-and-tube heat exchanger are theoretically studied. A correlation of the combined convection-condensation heat transfer is derived by using the heat and mass transfer analogy models. The experimental results have shown that the Colburn factor (j) and the friction factor (f) for humid air, simulating the exhaust of HRSG, are larger than those for dry air. It has been also found that the f factor difference between humid air and dry air decreases as the air side Reynolds number increases and both the f factor and the j factor for humid air increase with the increase of water vapour concentration. A scheme for the design of compact heat exchanger for HRSGs is presented. (C) 2010 Elsevier Ltd. All rights reserved.