The Kalina cycle is essentially a modified Rankine cycle that utilizes the mixture of two different compounds as the working fluid: water and ammonia. The basic Rankine cycle does not utilize a mixture of two components; however, pure water is utilized.

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.

The Rankine cycle is closed by a condenser (using cooling water) that convert saturated vapor at low pressure from the turbine generator into condensate, which is pumped back to the heat exchanger to restart the cycle.