The water vapor with condensed droplets often seen billowing from power stations is created by the cooling systems (not directly from the closed-loop Rankine power cycle). This "exhaust" heat is represented by the "Q_out" flowing out of the lower side of the cycle shown in the T–s diagram below.

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 Rankine cycle operates in the following steps: 1-2-3 Isobaric Heat Transfer. High pressure liquid enters the boiler from the feed pump (1) and is heated to the saturation temperature (2). Further addition of energy causes evaporation of the liquid until it is fully converted to saturated steam (3).