I'm assuming that steam engine will work on fluid that has starting and max temperature of 100 - I might be wrong :D

You inspired this vanilla set-up to be tested:
LOL.png
Yes it does generate electricity, however it can only produce 88% of the power, due to oil's starting temperature being 25 ...

I see where your confusion comes from. There is an equal chance for springs to appear everywhere, not just on desert tiles. Just because the screenshots show desert, does not mean it only spawns in the desert.

Airat9000, Have you tried putting only the zipped mod in your mods directory? In addition, the water spring is quite rare, so needs some searching to find.

After, a slight allnighter, the mod has now been updated and produces geothermal power.

It works and everything!

Type: Mod
Name: Geothermal Spring Water
Description: This mod adds a hot water resource that can be pumped with a pumpjack like oil.
License: http://www.dbad-license.org/
Version: 0.1.1
Release: 2015-08-02
Tested-With-Factorio-Version: 0.12.2
Category: SimpleExtension
Tags: Free, Water, Resources ...