In this cycle, the solubility of ammonia in water is used for cooling and heat absorption and release are performed using four main heat exchangers:

Generator
Condenser
Evaporator
Absorber

In addition to a liquid-liquid exchanger.

Heat is applied to the generator, which contains a solution of ammonia-water rich in ammonia. The heat causes high-pressure ammonia vapor to leave the solution. The high-pressure ammonia vapor flows to the condenser, where the high-pressure ammonia vapor is converted to a liquid in the condenser, releasing heat.

The high-pressure ammonia liquid then flows through an orifice to the low-pressure side of the cycle. This liquid evaporates at low pressure in the evaporator, providing cooling or refrigeration conditions. The low-pressure vapor then flows to the absorber, which contains a water-rich solution and absorbs the ammonia. The solution in the absorber, now once again rich in ammonia, is pumped to the generator, ready to repeat the cycle.