How does the second law of thermodynamics limit heat-engine efficiency?

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The second law of thermodynamics dictates that a heat engine cannot convert all absorbed heat into work, establishing a fundamental limit on efficiency.12

A heat engine operating in a cycle absorbs heat Q1 from a high-temperature reservoir (T1) and exhausts waste heat Q2 to a lower-temperature reservoir (T2). Because the engine returns to its original state, the work done is W=Q1−Q2. The second law requires that the net entropy change of the reservoirs must be greater than or equal to zero (ΔS≥0). If Q2 were zero, the entropy change would be negative, violating this law.12

Consequently, some heat must always be exhausted as waste, limiting the maximum possible efficiency—known as the Carnot efficiency—to:

η=1−T2T1

This limit is a law of nature; no design improvements or reduction of mechanical imperfections like friction can surpass this theoretical maximum, as it is dictated by the temperatures of the heat reservoirs themselves.12