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that is only a thermostat. it acts as a valve based on temperature of the fuel, it does not contain coolant, ever.
it directs fuel to a set of pipes (heat exchanger) where coolant and fuel flow independently.
theres nothing wrong with the description you provided. You have to test it by temperature and sealing ability when closed.
you can run without it. it would be best to have it in place though if you live in a cold climate.
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