Provided is a novel regenerative heat exchanger and a method for heating a gas in the heat exchanger. The regenerative heat exchanger features a chamber separated into a plurality of annular concentric spaces, including: a first, inner annular space defining a hot collection chamber; a second, outer annular space concentric to and around the first space defining a cold collection chamber; and a third annular space defining a heat exchange zone concentric to and between the first and second spaces. The heat exchange zone contains a particulate heat transfer material. The third space is supported on the inside by a concentrically disposed hot grid, and the external diameter of the third annular space is less than about double the internal diameter of the third annular space. The invention has particular applicability to the feeding of hot blast to a blast furnace in the iron making industry.