A fireplace having a cabinet, a combustion chamber within said cabinet, said combustion chamber defined in part by a plurality of walls, decorative logs and a burner disposed in said combustion chamber, said cabinet including a transparent panel through which said logs are viewed, said cabinet having a first plenum and a second plenum, said first and second plenums located within said cabinet and defined in part by said combustion chamber walls, and a heat exchanger element in thermal communication with said combustion chamber and interposed between said first and second plenums, said heat exchanger element having an air inlet in fluid communication with an air outlet of said first plenum and an air outlet in fluid communication with an air inlet of said second plenum, said heat exchanger element comprising walls defining a generally U-shaped interior air flow path, said generally U-shaped interior air flow path extending between an air inlet and an air outlet of said heat exchanger element, and a plurality of conduits extending through said interior air flow path and through which conduits combustion gases flow.