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.

ORC is the Rankine process, where instead of the water some organic compound is used as a flowing medium (toluene, isobutene, isopentane or silicon fluids). ORC is one way to generate electricity and heat in lower temperatures. Heat from evaporation of organic fluid is less than that of water.

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.

It is shown that by utilizing the full potential of screw expanders instead of turbines, it is possible to produce Organic Rankine Cycle (ORC) systems at these outputs, which can be installed for a cost in the range of $1500 to $2000 /kWe of net output.