Ambient air enters the inlet filter, is compressed, and increases in temperature in the compressor section. The air (T1) is then piped to the regenerator/recuperator (PAL-TEX), which heats the air. The heated air (T2) is then returned to the combustor and the turbine section of the engine via piping. After the exhaust gas is expanded through the turbine, the exhaust gas (T3) is ducted through the regenerator where the waste heat is transferred to the compressed air. In effect, a portion of the exhaust heat that would otherwise be lost is transferred to the compressed air; thereby, decreasing the amount of fuel that must be consumed to operate the turbine. This process reduces the amount of fuel required to reach combustor temperatures. Depending on the pressure ratio a dramatic increase in cycle efficiency can be achieved by the use of a regenerator.