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With binary cycle geothermal power plants, deep well Pumps are used to pump hot water from a geothermal well, through a heat exchanger, and the cooled water is returned back to the underground Reservoir . A second "working" or "binary" fluid, typically a butane or pentane hydrocarbon, is pumped at fairly high pressure (500PSI) through the heat exchanger, where it is vaporized and then directed through a turbine. The vapor exiting the turbine is then condensed by cold air radiators or cold water and cycled back through the heat exchanger.

Examples of binary cycle geothermal plants include Mammoth (California), Steamboat Springs (Nevada), and Hilo (Hawaii).

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