A fluidized-bed dryer was built and operated at the Raft River Geothermal Test Site in south central Idaho to test the feasibility of using low-temperature (145/sup 0/C or lower) geothermal fluids as an energy source for drying operations. The dryer performed successfully on two potato industry waste products that had a solid content of 5 to 13%. The dried product was removed as a sand-like granular material or as fines with a flour-like texture. Test results, observations, and design recommendations are presented. Also presented is an economic evaluation for commercial-scale drying plants using either geothermal low-temperature water or oil as a heat source