An auxiliary reactor for use with a reformer reactor having at least one reaction zone, and including a burner for burning fuel and creating a heated auxiliary reactor gas stream, and heat exchanger for transferring heat from auxiliary reactor gas stream and heat transfer medium, preferably two-phase water, to reformer reaction zone. Auxiliary reactor may include first cylindrical wall defining a chamber for burning fuel and creating a heated auxiliary reactor gas stream, the chamber having an inlet end, an outlet end, a second cylindrical wall surrounding first wall and a second annular chamber there between. The reactor being configured so heated auxiliary reactor gas flows out the outlet end and into and through second annular chamber and conduit which is disposed in second annular chamber, the conduit adapted to carry heat transfer medium and being connectable to reformer reaction zone for additional heat exchange.