We studied heat production in Pd-impregnated alumina powder in the presence of hydrogen and deuterium gases, investigating claims of anomalous heat generated as a result of nuclear fusion, usually referred to as a low energy nuclear reaction (LENR). By selecting the water isotope used to fabricate the material and then varying the gas used for loading, we were able to influence the amount of heat released or consumed. We suggest that Pd in its nanoparticle form catalyzes hydrogen/deuterium (H/D) exchange reactions in the material. This hypothesis is supported by heat measurements, residual gas analysis (RGA) data, and calculations of energy available from H/D exchange reactions. Based on the results we conclude that the origin of the anomalous heat generated during deuterium loading of Pd-enriched alumina powder is chemical rather than nuclear. (C) 2012 Elsevier B.V. All rights reserved.