This study investigates using exergy analysis the technical factors that influence the feasibility of substituting steam supplied for other energy sources in industrial heating. Some alternative configurations for the steam-supply system capable of broadening the range of industries able to use the steam for heating are proposed. When examining the feasibility of substituting steam for other energy currencies for providing process heat, exergy analysis quantitatively determines the increase in process efficiency when a lower value energy currency such as steam is used in place of a higher value energy currency such as electricity. Many industries can benefit from using steam for some or all of their heating requirements. An illustrative example for the Bruce Energy Center in Ontario, Canada is presented to demonstrate the importance Of using exergy analysis to assess the feasibility of industrial steam process heating. Some alternate reconfigurations of the Center are considered to supply steam at a variety of thermodynamic states, and better match the steam-state requirements of many industries. The results Suggest that exergy analysis should be used as the central tool in process optimization when the use of large quantities of the steam in energy centers is contemplated. Copyright (C) 2004 John Wiley Sons, Ltd.