diff --git a/src/main/java/gregtech/GT_Mod.java b/src/main/java/gregtech/GT_Mod.java
index 081589db..10f1860e 100644
--- a/src/main/java/gregtech/GT_Mod.java
+++ b/src/main/java/gregtech/GT_Mod.java
@@ -227,6 +227,7 @@ public class GT_Mod implements IGT_Mod {
         gregtechproxy.mIncreaseDungeonLoot = tMainConfig.get(aTextGeneral, "IncreaseDungeonLoot", true).getBoolean(true);
         gregtechproxy.mAxeWhenAdventure = tMainConfig.get(aTextGeneral, "AdventureModeStartingAxe", true).getBoolean(true);
         gregtechproxy.mHardcoreCables = tMainConfig.get(aTextGeneral, "HardCoreCableLoss", false).getBoolean(false);
+        gregtechproxy.mSmallLavaBoilerEfficiencyLoss = tMainConfig.get(aTextGeneral, "SmallLavaBoilerEfficiencyLoss", true).getBoolean(true);
         gregtechproxy.mSurvivalIntoAdventure = tMainConfig.get(aTextGeneral, "forceAdventureMode", false).getBoolean(false);
         gregtechproxy.mHungerEffect = tMainConfig.get(aTextGeneral, "AFK_Hunger", false).getBoolean(false);
         gregtechproxy.mHardRock = tMainConfig.get(aTextGeneral, "harderstone", false).getBoolean(false);
diff --git a/src/main/java/gregtech/common/GT_Proxy.java b/src/main/java/gregtech/common/GT_Proxy.java
index 3abe2374..201e7bb6 100644
--- a/src/main/java/gregtech/common/GT_Proxy.java
+++ b/src/main/java/gregtech/common/GT_Proxy.java
@@ -132,6 +132,7 @@ public abstract class GT_Proxy implements IGT_Mod, IGuiHandler, IFuelHandler {
     private final DateFormat mDateFormat = DateFormat.getInstance();
     public ArrayList<String> mBufferedPlayerActivity = new ArrayList();
     public boolean mHardcoreCables = false;
+    public boolean mSmallLavaBoilerEfficiencyLoss = true;
     public boolean mDisableVanillaOres = true;
     public boolean mNerfStorageBlocks = true;
     public boolean mHardMachineCasings = true;
diff --git a/src/main/java/gregtech/common/tileentities/boilers/GT_MetaTileEntity_Boiler_Lava.java b/src/main/java/gregtech/common/tileentities/boilers/GT_MetaTileEntity_Boiler_Lava.java
index 352a9c66..9c8d09b9 100644
--- a/src/main/java/gregtech/common/tileentities/boilers/GT_MetaTileEntity_Boiler_Lava.java
+++ b/src/main/java/gregtech/common/tileentities/boilers/GT_MetaTileEntity_Boiler_Lava.java
@@ -1,5 +1,6 @@
 package gregtech.common.tileentities.boilers;
 
+import gregtech.GT_Mod;
 import gregtech.api.enums.Dyes;
 import gregtech.api.enums.Materials;
 import gregtech.api.enums.OrePrefixes;
@@ -10,10 +11,12 @@ import gregtech.api.metatileentity.MetaTileEntity;
 import gregtech.api.objects.GT_RenderedTexture;
 import gregtech.api.util.GT_ModHandler;
 import gregtech.api.util.GT_OreDictUnificator;
+import gregtech.api.util.GT_Utility;
 import gregtech.common.GT_Pollution;
 import gregtech.common.gui.GT_Container_Boiler;
 import gregtech.common.gui.GT_GUIContainer_Boiler;
 import net.minecraft.entity.player.InventoryPlayer;
+import net.minecraft.item.ItemStack;
 import net.minecraftforge.common.util.ForgeDirection;
 import net.minecraftforge.fluids.FluidStack;
 import net.minecraftforge.fluids.IFluidHandler;
@@ -24,6 +27,8 @@ public class GT_MetaTileEntity_Boiler_Lava
         super(aID, aName, aNameRegional, new String[]{
                 "A Boiler running off Lava",
                 "Produces 600L of Steam per second",
+                "Drops to 200L of Steam per second as byproduct slot fills",
+                "Clean out byproducts to keep efficiency high",
                 "Causes 20 Pollution per second"});
     }
 
@@ -96,13 +101,37 @@ public class GT_MetaTileEntity_Boiler_Lava
                             aBaseMetaTileEntity.doExplosion(2048L);
                             return;
                         }
-                        this.mFluid.amount -= 1;
+                        
+                        int maxOutput = 300;
+                        int minOutput = 100;
+                        
+                        double efficiency = 1.0;
+
+						if (GT_Mod.gregtechproxy.mSmallLavaBoilerEfficiencyLoss) {
+							ItemStack byproductStack = aBaseMetaTileEntity.getStackInSlot(3);
+
+							if (byproductStack != null && !(GT_Utility.isStackInvalid(byproductStack))) {
+								// Efficiency drops from 100% when there is no byproduct, 
+								// to 0% when there is a full stack of byproduct
+								efficiency = 1.0 - (double) byproductStack.stackSize / (double) byproductStack.getMaxStackSize();
+							}
+						}
+                        
+                        //Decrease water amount in proportion to steam production
+                        //Can't decrease by a fraction, as fluid amounts are integers, so need to decrease randomly so expected amount consumed is correct
+                        if(aBaseMetaTileEntity.getRandomNumber(100) < Math.round(efficiency * 100.0)) {
+                        	this.mFluid.amount -= 1;
+                        }
+                        
+                        //Steam output drops from maxOutput when efficiency is 100% to minOutput when efficiency is 0%
+                        long output = (minOutput + Math.round((double) (maxOutput - minOutput) * efficiency));
+
                         if (this.mSteam == null) {
-                            this.mSteam = GT_ModHandler.getSteam(300L);
+                            this.mSteam = GT_ModHandler.getSteam(output);
                         } else if (GT_ModHandler.isSteam(this.mSteam)) {
-                            this.mSteam.amount += 300;
+                            this.mSteam.amount += output;
                         } else {
-                            this.mSteam = GT_ModHandler.getSteam(300L);
+                            this.mSteam = GT_ModHandler.getSteam(output);
                         }
                     }
                 } else {
@@ -117,12 +146,20 @@ public class GT_MetaTileEntity_Boiler_Lava
             if ((this.mProcessingEnergy <= 0) && (aBaseMetaTileEntity.isAllowedToWork()) &&
                     (GT_OreDictUnificator.isItemStackInstanceOf(this.mInventory[2], OrePrefixes.bucket.get(Materials.Lava)))) {
                 this.mProcessingEnergy += 1000;
-                aBaseMetaTileEntity.decrStackSize(2, 1);
-                aBaseMetaTileEntity.addStackToSlot(3, GT_OreDictUnificator.get(OrePrefixes.bucket, Materials.Empty, 1L));
+                //Either we only had one bucket of lava in the input, and this is fine, or we had a stack of lava buckets.
+                //Those can only stack when cheating, so we don't care about voiding them as we can just cheat in more
+                aBaseMetaTileEntity.setInventorySlotContents(2, GT_OreDictUnificator.get(OrePrefixes.bucket, Materials.Empty, 1L));
             }
             if ((this.mTemperature < 1000) && (this.mProcessingEnergy > 0) && (aTick % 8L == 0L)) {
                 this.mProcessingEnergy -= 3;
                 this.mTemperature += 1;
+                if (aBaseMetaTileEntity.getRandomNumber(333) == 0) {
+                    //Produce one byproduct on average every one bucket of lava
+                    if(!aBaseMetaTileEntity.addStackToSlot(3, GT_OreDictUnificator.get(OrePrefixes.dustImpure, Materials.Stone, 1L))) {
+                        //If the output slot had something in it already, stick one dust in:
+                        aBaseMetaTileEntity.setInventorySlotContents(3, GT_OreDictUnificator.get(OrePrefixes.dustImpure, Materials.Stone, 1));
+                    }
+                }
             }
 
             if (this.mProcessingEnergy > 0 && (aTick % 20L == 0L)) {