"Energy can be transformed (changed from one form to another), but it can neither be created nor destroyed".
The modern version of the steam engine has been in vogue from 1780 when James Watt invented conversion of reciprocating motion to rotary motion. As the key trigger for the industrial revolution steam is and remains the medium for bulk energy transformation.
Irrespective of the energy source, be it coal, bio-fuels, geothermal, solar thermal or nuclear the heat energy transformation takes place first to steam and then to rotary motion. Steam as a transformation medium is also used for other purposes like domestic heating and other industrial processes.
Let us see what properties of water and steam makes it the most suitable intermediary for energy transformation.