A heat exchanger transfers heat from one fluid to another through conduction and convection. There are three types of heat transfer that occur: from fluid to tube wall, through the tube wall, and from tube wall to outside fluid. Heat exchangers are classified by flow arrangement and construction type. Common types include shell-and-tube (bundles of tubes in a shell), plate (thin aluminum plates stacked with gaps), regenerative (allows cyclic heat transfer), and adiabatic wheel (stores heat before releasing it).