A novel air handling unit (AHU) aimed at reducing energy consumption was introduced in this study. In the proposed novel AHU, the heating coil is completely removed, and therefore, no heating coil energy demand is needed. The novel AHU used primary energy recovery as well as secondary one to utilize the return air energy and exergy. Through the first energy recovery unit, the return air exergy was recovered, while in the secondary heat exchanger, return air energy was recycled. Results showed that using the novel AHU leads to a reduction in energy consumption as well as the exergy losses. Three climate zones of A, B, and C were selected to assess the novel AHU performance. From the first law viewpoint, at zone B, using novel AHU has priority over other zones, while in the second law analysis, utilizing the novel AHU at zones B and C is more beneficial. Based on the first law analysis, owing to using novel AHU, energy consumption reduced up to 55.2% at Penang climate zone. Second law analysis revealed that utilizing the novel AHU decreased the irreversibility up to 51.4% in the Vancouver climate region.