A new algorithm for the prediction of area requirements in heat exchanger networks (HEN) is presented. The method uses a diverse pinch diagram as a basis, similar to the one suggested by Rev and Fonyo (Chemical Engineering Science, 46 (7), 1623). A numerical application for a problem involving streams with significant differences in their heat transfer coefficient values is included to show how the proposed algorithm provides better estimates for minimum area requirements in HEN than the widely-used Bath formula and the algorithm by Rev and Fonyo. (C) 2004 Elsevier Ltd. All rights reserved.