A method for using untreated produced water to generate steam and simultaneously producing diluents is disclosed. The method includes a combustion process for generating steam for hydrocarbon recovery using untreated water and, an optional process for recovering combustion byproducts to assist in hydrocarbon recovery or solvent injections. Specifically, a novel combustion method and a double-tube heat exchanger are used to generate steam while minimizing or eliminating water treatment steps and boiler fouling. Low value pitch, also known as asphalt, is used for combustion fuel. In addition to the steam generation, byproducts of the combustion process can be utilized in solvent injections or as a diluent.