AbstractChemical‐looping combustion (CLC) is a combustion method for a gaseous fuel with inherent separation of the greenhouse gas carbon dioxide. A CLC system consists of two reactors, an air reactor and a fuel reactor, and an oxygen carrier circulating between the two reactors. The oxygen carrier transfers the oxygen from the air to the fuel. The flue gas from the fuel reactor consists of carbon dioxide and water, while the flue gas from the air reactor is nitrogen from the air. A two‐compartment fluidized bed CLC system was designed and tested using a flow model in order to find critical design parameters. Gas velocities and slot design were varied, and the solids circulation rate and gas leakage between the reactors were measured. The solids circulation rate was found to be sufficient. The gas leakage was somewhat high but could be reduced by altering the slot design. Finally, a hot laboratory CLC system is presented with an advanced design for the slot and also with the possibility for inert gas addition into the downcomer for solids flow increase.