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How to Properly Install and Maintain an Outdoor Wood Burner Outdoor wood burners, also called wood boilers, look like small sheds that have the appearance of a small smoke stack. They heat water, or a mix of water and antifreeze, which is then circulated throughout the house. When EPA-approved outdoor wood boilers are made of dry wood, they are an environmentally friendly alternative to fossil fuel heating. They still emit plenty of smoke. Energy Efficiency Wood heat