I need to buy a controller and burner, plain and simple. Running 6-8kw. But at the moment I'm sick of filling my 50 lb tank every 2-3 weeks, but i was thinking for the moment... So the question is would my furnace exhaust be dangerous, or is the danger of high levels only due to gas leaks as apposed to exhaust leak..?
BOTH. Having just looked into it, I can suggest a possible solution- but it will not be cheap.
First, your hot water tank isn't designed to produce a clean exhaust. This means soot, byproducts of incomplete combustion and carbon monoxide are all possibilities. While we're on the subject, this also goes for your gas dryer. Then there is the inconsistent running and large quantity. Unless the tank is in a big greenhouse, it's really not recommended.
So what's the alternative? How about a tankless water heater in your growroom ($200), connected to a hot water storage tank, say, with a natural gas backup? Such storage tanks are readily available on the market and people use them for heating domestic hot water with solar hot water systems or heat pumps. I was quoted $1200 new, so they aren't cheap.
The more you know...