KobusL0181

No, the unit uses a a heat pump to heat the air and an evaporator (looks like a little radiator) to extract the moisture.
The evaporator extracts the moisture allowing the already heated air to be re-used for the drying cycle (requiring a lot less energy) and not just blown either outside or into your room (a standard tumble dryer or condenser unit has to continuously heat new air using lots of energy).
The condensate is collected as water into a tank which you have to regularly empty, or you can connect the optionally provided pipe fitting to automatically eject the water to an appropriate drain.
I find that I have to empty the tank at least once a cycle when I dry a standard load of towels.