Thermal driven desiccant assisted air conditioning systems make use of waste heat to dehumidify humid outside air in a desiccant wheel. Within the scope of a research project, an investigation of a desiccant assisted air conditioning system was carried out, and a demonstration plant was built in an office building in Hamburg, Germany. The HVAC system consists of a small CHP-plant, a desiccant assisted ventilation system and an earth energy system (borehole heat exchangers) for cooling instead of an electric driven compression chiller. The radiant floor heating system of the building is used for cooling. In this paper, measurement results and investigations of performance, energy demand and operating costs will be presented. It was found that considerable primary energy savings can be achieved (70%) using desiccant air conditioning with borehole heat exchangers. But even if electric chiller is used, savings of 30% in primary energy can be accomplished. Starting costs for the demonstration plant were not higher than for a conventional system, but running costs could be reduced drastically. (C) 2004 Elsevier B.V. All rights reserved.