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.

The Rankine cycle is an idealized thermodynamic cycle of a heat engine that converts heat into mechanical work while undergoing phase change. The thermal efficiency equals 1 minus the ratio of the low-to-high pressures to the power of 1 minus the reciprocal of the heat capacity ratio.

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.