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).

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 organic Rankine cycle is is similar to the Rankine steam cycle, but uses an organic fluid such as refrigerants and hydrocarbons instead of water as the working fluid. The ordinary Rankine cycle uses thermal power to convert water to steam, which expands through a turbine in order to generate electricity.

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.