This paper proposes a new concept of spatial recuperative expander which injects cold refrigerant during exhaust stroke as a measure of direct contact heat transfer. The commercial simulation tool GT-SUIT 7.4 is employed to model and verify the feasibility of spatial recuperative expander. The research contents are comprised of the following aspects: Firstly, the principles and performance characteristics between traditional reciprocating piston expander and spatial recuperative expander have been investigated. Secondly, the potential of spatial recuperation by adjusting cold refrigerant injection timing has been studied. Thirdly, the relation between expander performance and variable expansion ratio under constant operating condition has been discussed. Fourthly, the thermodynamic performance of spatial recuperative expander under various operating conditions has been examined. The simulation results indicate that: Firstly, the torque per unit mass, thermal efficiency, exergetic efficiency, isentropic efficiency and recuperative efficiency of optimum spatial recuperative expander are 51.00%, 6.74%, 20.79%, 5.68% and 11.36% higher than traditional reciprocating piston expander respectively. Secondly, the cold refrigerant injection timing has little influence on recuperative efficiency because the recuperation process can complete within 16.67 ms. Thirdly, different operating conditions correspond to particular optimal expansion ratio. Fourthly, increasing the pump pressure and maintaining appropriate superheated degree can reconcile both power output and thermal economy. While increasing the refrigerant temperature and preserving suitable pump pressure could benefit both recuperative performance and power output. (C) 2016 Elsevier Ltd. All rights reserved.