The document discusses the concept of exergy, which is a measure of the available useful work in a system or flow of matter and energy. Exergy is defined as the maximum theoretical useful work obtained as the system is brought into equilibrium with its surroundings. The document covers definitions of heat, work and exergy, as well as exergy of closed and open systems. It also discusses exergy change, effectiveness and loss of exergy due to irreversibilities. Several example problems are provided to calculate exergy values and changes for various thermodynamic processes.