Power systems utilizing steam also have the benefit of combustion external to the power prime mover. These so called "external combustion engines" differ from gas turbines or diesel combustion where the working fluid (providing power to a turbine or piston) is also directly involved in the combustion. The obvious advantage of external combustion engines is enormous fuel flexibility. All varieties of biomass, waste fuels, MSW, and industrial byproducts can be burned in incinerators or waste fuel boilers to make steam. This includes industries like forest products, where opportunity fuels and the need for steam create ideal conditions. .
Another form of waste which is often used to make steam is waste heat. As in the case of waste fuels, unusable heat from combustion or from cooling operations can be captured in boilers/heat exchangers designed for that purpose, in some cases utilizing more than 50% of the otherwise discarded energy. Finally, it is important to note the role of steam in combined cycle power plants. Combustion systems and gas turbines discharge heat at very high temperatures. This high temperature heat exhaust results in poor to modest heat engine performance. If that heat is used to make steam which is then used in a power cycle, the resultant discharge of heat takes place at a much lower temperature, increasing the efficiency of the combined power cycle. This principle appears in the design of nearly all new combined cycle power plants which can achieved thermal efficiencies greater than 50% without cogeneration (even higher with it!).
The question then turns to the prime mover. With high pressure, high temperature steam, one has really to choose between stream turbines or reciprocating or rotary engines. Their historical sequence is very well known with reciprocating steam engines being presented as indicating the beginning of the industrial revolution followed by the more efficient steam turbine some time later.