The air that is used for combustion will come from the water vent this vent will either through the roof or from the outside of the wall.
Venting tankless water heater through wall.
Tankless water heaters use fans to blow exhaust from the unit horizontally allowing vents to terminate on the side of a house.
If the unit is installed on a basement wall the vent pipe can be run up just a few feet and then vented out the side with the use of a 90 degree elbow.
The only other option is an electric water heater which requires no vent.
Tankless water heaters are ventilated in two ways.
Technically you can vent your tankless heater through the chimney but only in certain circumstances.
Traditional gas tank water heater require venting through the roof.
Tankless water heaters allow for either horizontal venting out a side wall or up through the roof.
A blower or power vent draws combustion air in to the heater and a power vent pushes exhaust gases out through a separate or dedicated exhaust flue.
All water heater venting systems use a vent duct or pipe also called a chimney or flue to bring exhaust gases from the water heater to the outdoors.
The direct vent water boiler is another type of water heater venting that you should know about.
Traditional tank gas water heaters vent through the roof using galvanized steel b vents because they work through natural draft allowing the hot exhaust air to rise up and out of the house.
All solid liquid or gas fueled water heater whether they are tank type or tankless must vent through the roof unless they are direct vent.
The duct may be metal or plastic depending on the type of vent system.
Direct vent units attract outside air from the house or building while power vent units solely need an exhaust vent and should be installed in a larger area for receiving sufficient air amount for combustion.
By contrast tankless water heaters vents can terminate on a side wall because their combustion fan blows exhaust from the units horizontally.
This vent also allows for off gasses to be unleashed outside too.
Power vent and direct vent.
The biggest issue is that the condensate is very acidic and will corrode the masonry of a chimney.
Tankless water heaters can vent through the roof or a side wall creating more flexibility and options for placement.