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.

Organic Rankine cycle (ORC) machines are used to convert low-temperature heat resources into power. Examples include systems making use of waste heat in a cogeneration system, low temperature geothermal electricity generation, solar ponds, and potentially OTEC.

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.