Activities performed during calendar year 1979 for the hardware system development and testing task are presented. The fluidized bed technology was applied to the drying of potato by-products and to the exchange of heat to air in the space heating experiment. Geothermal water was flashed to steam and also used as the prime energy source in the steam distillation of peppermint oil. Geothermal water temperatures as low as 112.8/sup 0/C were utilized to distill alcohol from sugar beet juice, and lower temperature water provided air conditioning through an absorption air conditioning system. These experiments are discussed; EGG-2013