In this study, the application of VAR system to an industrial company is investigated. For this purpose, the company which requires an air-conditioning system to its office building was chosen. After determining this company had an industrial furnace, this research aimed to design the VAR system utilizing waste heat from this furnace flue gases to air-condition the office building. Firstly, the physical properties and heat quantity of the flue gases were determined and the cooling load of the office building was calculated. It was found out that the flue gases had enough heat capacity to drive the VAR system. Next, single effect VAR system was introduced and the thermodynamic, energy and exergy analysis were made. The COP of the VAR system is calculated to be 0.64 and the highest exergy destruction was obtained at the generator which is 37.19kW. Finally, the application of the VAR system to this industrial company was analyzed in detail. The capital, maintaining and operating costs of the VAR system were analyzed and compared with alternative systems.