The working principle of the organic Rankine cycle is the same as that of the Rankine cycle: the working fluid is pumped to a boiler where it is evaporated, passed through an expansion device (turbine, screw, scroll, or other expander), and then through a condenser heat exchanger where it is finally re-condensed.

An organic Rankine cycle (ORC), is fundamentally the same as a steam Rankine cycle; however, it uses a lower boiling point organic fluid to better match its operation to lower temperature heat sources. ORC systems can achieve better efficiencies than steam turbines for smaller systems (less than a few MW_e).

The Rankine cycle is named after William John Macquorn Rankine, a Scottish polymath professor at Glasgow University. Heat energy is supplied to the system via a boiler where the working fluid (typically water) is converted to a high-pressure gaseous state (steam) in order to turn a turbine.

The Rankine cycle operates in the following steps: 1-2-3 Isobaric Heat Transfer. High pressure liquid enters the boiler from the feed pump (1) and is heated to the saturation temperature (2). Further addition of energy causes evaporation of the liquid until it is fully converted to saturated steam (3).