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).

Organic Rankine Cycle (ORC) is a power generating process which uses refrigerant instead of water/steam. It is running on much lower temperatures than the standard water/steam cycle, typically around 120-180°C.

Additionally, ORCs eliminate the need for full-time plant operators because they operate at lower pressures and do not need water chemistry maintenance. However, working fluid cost, decomposition, temperature limits are an organic Rankine cycle's primary disadvantages.

The advantages of the ORC system are that it performs well under partial load and, because of the low working pressures and temperatures, it is not subject to the regulations of steam equipment. ORC units are suitable for biomass CHP plants with an electrical output as small as 200 kW.