The generator-absorber heat exchange (GAX) cycle is an absorption heat pump cycle that appears to offer the best potential for an efficient gas-fired absorption heat pump for residential applications. The GAX cycles under development use the same ammonia-water working fluids and have many of the same components and functions as previous gas-fired absorption air conditioners, but with increased heat recovery and a higher coefficient of performance (COP). The distinguishing feature of the GAX cycle is the unique way that heat recovery is accomplished within the cycle. Shows how a pinch-point analysis technique can be applied to illustrate the operation of a GAX cycle and to highlight its capabilities. Pinch-point analysis, while not commonly used in the heating, ventilating, and air conditioning (HVAC) industry, is commonly used in the chemical process industries, where internal heat recovery is a key aspect of process design.KEYWORDS: year 1995, generators, absorption heat pumps, gas fired, domestic, cycles, ammonia, water, heat recovery, energy conservation, calculating, performance, designing, analysis