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The present work presents the concept of a new rotary engine, and provides first investigations for its implementation in the energy sector. The main focus of this work is to provide a theoretical description of the engine and its differences from the state-of-the-art technologies. Its innovative principle consists of concentric operation, with two pistons of different rotation radius and the addition of a third intermediate chamber between the compression and combustion chamber. A description of the engine’s physical model is provided, followed by an analysis of the selected specific geometrical features. Additionally, a thermodynamic analysis clarifies the operational advantage compared to the existing cycles and, finally, a numerical investigation on the engine’s bulk performance is provided to quantify the anticipated results of the theoretical analysis.