Areke distillation is one of the common economic activities and a source of income for many households in Ethiopia. But locally areke distillation process consumes much amount of wood biomass and takes a long time. liter of areke distillation takes up to 2 to 3hours by consuming 8 to 9 kg wood biomass that causes environmental pollution and health problems. This thesis work presents the manufacturing of an energy-efficient distilling pot from aluminum and iron chips (fine particles) as well as design a simple and cost-effective heat exchanger for condensing and cooling of areke vapor. Six round bottoming samples of pots were prepared to have a surface area 2 0.28m from random mixtures of 10%, 20%, and 30%aluminum fine particles with clay soil as well as 10%, 20%, and 30%iron fine particles with clay soil independently. The aluminum and iron fine particles are released as chips in different construction, welding, and other machine processing small industries. The design condenser and cooler heat exchanger is from the copper tube with a length of 5.8m and an area of 2 3.8cm that immersed and jacketed in replaceable water. An experimental setup was manufactured and conducted tests by distilling the same liter of areke by recording the amounts of consumed wood biomass, distillation time, amount of distillation, and checking the physical properties of local areke with comparing local apparatus. Sigma plot v 14 is used to linear regression fitting curve of properties and the modeling was done using solid work and CATIA software. The test and analysis results showed that the thermal properties of sample pots (rate of heat transfer, conductivity, specific, diffusivity, effusivity, and others) have a great dependence on a mixed amount of aluminum and iron fine particles. The condensing and cooling capacity of the design heat exchanger has good enough to cool the areke vapor. It found that similar to local apparatus it is possible to distill1 liter of areke from5.5 liters of areke mash using a design heat exchanger with assembling all prepared sample pots of 10%, 20%, and 30%an aluminum particle as well as 10%, 20%, and 30%iron fine particles and soil by consuming 7.9kg, 6.35kg, 5.75kg, 8.3kg, 7.45kg and 6.65kg of wood in 1.335hr, 1.225hr, 1.125hr, 1.385hr, 1.28hr and1.22hr respectively. 30% aluminum-containing sample pots with a heat exchanger assembly is good which reduces more time and wood biomass from a prepared sample of pots. Moreover, physical property results of distilled areke have excellent agreement with local areke.