It should work fine. You might not be able to get the water quite as hot on the secondary side as if you you had one a couple sizes larger but you should be able to run the waste oil boiler a little hotter if needed. Especially if it is pressurized.
Not even built yet, going to be simple though. Have a 500 gallon fuel tank that doesn't leak, has removable saddle that it sits in and is clamped to with bands. Plug the fill ports and rotate 180 degrees in case of any thin spots from previous water being in the fuel. Since it is waste oil I was going to have a piece of 14 gauge stainless rolled. Then use 2 1/2" stainless 409 exhaust pipe for the heat exchanger. Come up a foot, have the muffler shop bend a forty five, go another couple of foot, another forty five then to the clean out on front like a GT6000 from Natures Comfort. Figure 8 tubes should be plenty.
With it being waste oil the tubes shouldn't need cleaned that often and when they do with the forty five's I should be able to clean the whole tube from the front.
I have ten foot sections of 1/4" spring steel rods that we use when cleaning drain tiles, once in awhile an end might get snapped off, the stuff is very tough yet very flexible.