An external heat exchanger (EHE) is believed to be a viable way to solve the heat transfer surface arrangement and furnace temperature control to scale-up of circulating fluidized bed (CFB) boilers. A new concept of EHE is developed in this paper. The flow of hot solid particles diverted from the standpipe is controlled by pneumatic (aeration airflows of recycle device or EHE), not the mechanical valve that is in popular use in many CFB boilers. The major feature of this EHE system is that it avoids the use of the mechanical valve that causes heavy erosion and high cost. An in-series connection between the EHE and the recycle device (i.e. the recycle device is on top of the EHE) is proposed. Experiments completed in cold test rigs show that the solid mass flow rate diverted from the standpipe to the EHE or the loop seal may be controlled well by adjusting the fluidizing air of the overflow part of the loop seal, the fluidized air of the fluidized chambers of the EHE and the aeration airflow to the standpipe. In addition, the new EHE has been validated successfully in a 12 MWe CFB boiler.