Note: The coolant would either go into the output tank or an available cell, not both. The GUI is merely an example.
As shown, for every 1000 mB of coolant produced, using normal water requires 8 dust while using Distilled Water only requires 1 dust.
Coolant can be placed in the world, but serves no useful purpose that way other than looking nice. A more practical use is to make 10K Cooling Cells.