There are plenty of sources of waste heat available in industry that are not frequently utilised, especially when it comes to small-scale installations and low-grade heat recovery. The reason is that traditional methods are not cost-effective or unsuitable for given operating conditions. However, recent technological progress has made reusing waste heat more feasible, not only for generating thermal, but also electrical power. This paper presents a new design of a micro-scale bladeless steam turbine suitable for combined heat and power (CHP) applications where low-grade waste heat is used, or as a replacement for pressure-reducing valves used to meet the demands of steam processing technologies in many industrial facilities. A 20 kW prototype of the turbine has been designed, built, and experimentally investigated to analyse its performance parameters. The results show that the turbine maximum isentropic efficiency was close to 30%, demonstrating that the turbine can compete with other concepts of bladeless-type turbines or with bladed designs in a power range below 100 kW where efficient solutions can hardly be found.