Andrea Rossi Preparing for Huge E-Cat Company

The commercial launch of the E-Cat started quietly with an anonymous customer towing away the shipping container in which the first 1 MW plant was built. The event was noticed by a relatively few people, and when the event was over many people who had been hoping for a definitive demonstration of cold fusion were left wondering what really went on, since only the customer’s consultant got to see the live testing in any detail.

Andrea Rossi, however, seemed to be very satisfied with the days work — he said it was a beginning, but a very important beginning, one in which an “almost infinite” COP was demonstrated with the plant running without any input power for five hours. His first sale made, Rossi now seems to have turned his mind towards commercializing this technology, and if you read what he says carefully you will note that he is planning to build a massive organization around his invention.

One of Rossi’s challenges is if he is going to protect his trade secret, he is going to have to be the sole provider of E-Cat products and services. This will mean that unless viable competition comes on the scene, the huge demand for working cold fusion products will have to be met by Leonardo Corporation who will be the manufacturer of E-Cat based products.

Rossi has actually said quite a lot about his business plans in remarks on his web site, The Journal of Nuclear Physics, and from his comments it is possible to get an idea of the business plan he has in mind.

Here are some key points that can be gleaned from recent comments.

1. Leonardo Corporation will be the sole manufacturers of the E-Cat reactors. Until now these reactors have been made by hand, but Rossi has said this process will be automated. Rossi has mentioned having plants or offices in Miami, Boston and Manchester, NH.

2. Outsourcing will be done for other components.

3. 10 per cent of pre-tax profits will be spent on research and development.

4. Leonardo Corporation will have employees who will recharge the units on site, and spent reactors will be returned to treatment units which will be located strategically for regeneration.

5. Leonardo Corporation will possibly eventually become a public company. About this, Ross has said “Probably we will sell shares to allow everybody to participate to this enterprise. But before this we have to consolidate our manufacturing and commercial system.”

6. While production of the 1 MW plants is already underway, it appears that Rossi’s priorities are to produce home heating units and electrical generator — both of which he estimates will take two years to achieve. He also says he has a ‘duty’ to use E-Cats for desalination — which his technology is ready for now.

When asked recently what Rossi’s motivation was for all the work he is doing, his reply was “to make cheap and clean energy”. It’s a simple goal that is hardly possible to find fault with, but the difficulties involved are daunting — even if he has the technology to accomplish this. It sounds like Leonardo Corporation is going to try to go it alone and build the production facilities and organizational infrastructure to handle the demand that will surely come once the E-Cat is accepted as a viable energy source.

Two obstacles seem apparent with this approach. First, once people realize what Rossi has achieved there will doubtless be competitors springing up trying to match or improve on his discovery, and piracy is certainly likely. Rossi has said that although they have protected the reactor’s core, “before or later it will be copied. We are perfectly aware of this.” Secondly, if Leonardo Corporation beats out competitors and is wildly successful, this would create a monopoly situation which would surely be broken up by regulators — something Rossi has acknowledged also.

Andrea Rossi does not seem to be worrying too much about these possible future difficulties right now. While he certainly has the loftiest of goals, he seems to be a practical man who concentrates on the immediate tasks at hand which for the moment is putting his invention to use one plant at a time.

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  • Franco

    While “Cold Fusion” and “Low Voltage” are still arguing with each other …. Rossi started selling his e-cats…… ;)

  • jaroc

    When Engineers and scientists have access to Mr. Rossi’s device, they will reengineer and tweak it, so as to make it run as efficient as possible. WOW! can’t wait for the IPO.

  • sapain

    concerning cold fusion, watch video on utube called anti gravity/cold fusion explained in detail. this video will explain the principles and math behind cold fusion and shows how frank zhidarsic compiles the math, also other have used h2 and nickel to produce results. rossi is wise to do it the way he is going, first out the door will give him a lead to regroup expenditures and be able to drop pricing when competitors come on line, also he may have patent for his unknown catalyst

  • Mark Dansie
  • Frank Foster

    To my understanding Mr. Rossi does not get paid intel the company that bought the E-Cat has it all installed and running 100% and there satisfied 100%. If this is true why would you invest his money to have a 1 mw power plant shiped halfway around the world if he did not think it would work 100%. He is not,claming that it will create power but that it will create, (heat) steam, which could create power. I just hope Mr. Rossie told someone else the secret ingredient.

    • Nomor Fillup

      Rumour has it the “secret” is stashed in the same vault where Coca Cola keeps their secret recipe. Sounds pretty safe.

  • James

    There are a number of research labs that have confirmed
    the low energy nuclear effect. It just may be this is way ahead of others.

  • Jesse

    After seeing the concept designs for the residential e-cats it is my unsolicited opinion that the name should be changed to Mr. Fusion. I wonder if anyone ownes the trademark.

  • arian

    #
    Andrea Rossi
    November 8th, 2011 at 2:57 PM

    Dear Matthew Waters:
    As I always said, I want not to play foot-ball with the bones of People. My company at the moment is a warship in stormy weather, during a hard battle. To invest in it is premature. So far we just sell industrial plants of 1 MW and our Customers are financing us.
    Warm Regards,
    A.R.#

    Matthew Waters
    November 8th, 2011 at 2:16 PM

    Mr. Rossi,

    I’ve heard rumors that you may start selling shares of your corporation. If this is true could you confirm, and if so, where would this information be announced? Further more, when would you be planning to do this?

  • arian
  • guest

    Isn’t all of your post “Rossi says”? Do you know that any of those assertions are facts for sure? How do you know? Other than because Rossi said so or you read it in some article based on what Rossi says?

    You don’t the client so how do you know it wasn’t someone who worked for Rossi?

    You can’t know Rossi’s finances so how do you know he doesn’t have tons of money already from secret investors who signed non disclosure agreements and can’t squawk without being sued for their trouble?

    • Rogerborg

      Uh, you know that you’re reading press releases here, right? This isn’t reportage.

  • http://None Howard

    What about using hemp to replace some of the oil feedstock?

  • daniel maris

    Well it sounds like a not bad strategy – especially have defence organisations involved…they are pretty immune to entanglement in health and safety regs.

    If all goes well he can show the machine works by selling it a to a few key orgs over the next year – at $2M a time… the sorts of orgs that are prepared to pay over the odds in order to be at the cutting edge of technology, and be able to make accurate assessments.

    He should then be able to build a proper semi-automated factory (still pretty small scale but able to bring down the costs to the point where the machine is v. attractive to companies and the public sector).

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  • http://none Jack T.

    This is what happens when you let the Soppranos into the green energy business. Put yourself in the shoes of the technician who came out there to test this contraption. You call your home office and say for sure it works. Or else you come back home to the States and find your wife and children missing.

    • Wes

      Well, not missing exactly; shrunk (unforunate side effect of the e-cat).

      • http://none Jack T.

        The only thing that has shrunk around here is our brains.

        Until this guy gives the plans/instructions for reproducing this to some universities around the world to test and verify the above is one of two explanations I see. The other explanation is that the test crew was in on the scam.

        He has an Italian patent. If it’s for real nobody is going to weasel the idea away from him. He’s jerking around selling this thing for $2 million apiece. If it was for real it would be more like $2 billion.

        • Nomor Fillup

          Jack,

          Mr. Rossi has a contract with University of Bologna to do just what you suggest. His partner Prof Emeritus Physics U Bologna, just gave a TED lecture on their discovery. Stay calm.

  • Wes

    Current e-cat designs will, in the future, be compared to the Wright Bros. first crude flying machines. Rossi would be wise to partner with a large research firm to maintain his lead in the market. Holding his cards close to his vest will yield a stale, worthless asset in short order.

    • Mike Cheek

      I would agree that if this is really a breakthrough, Mr. Rossi would be better served partnering with a manufacturing or engineering firm. (You had suggested a research firm.) There are so many practical issues. For example, in most countries you would need to get an environmental permit or environmental OK for this system. As I understand, it gives off gamma radiation. In an industrial setting this would not be such a big problem, but for a residence, there would seem to be potential safety issues. Secondly, setting up a Nickel catalyst recycling center. It certainly could be done, but it would surely be a full time job for a manager. My point is there are many full time jobs.

      The good thing is that almost the technology other than his reactor core has been worked out. There are any number of companies here in Houston, TX that routinely take concepts, obtain a license, and then ramp it up to full production.

      It sounds as if Mr. Rossi is wanting to tightly retain control of all aspects. No doubt he is afraid of large teams of corporate lawyers who create licensing agreements that turn out to be not so fair. Nonetheless, Mr. Rossi faces many practical engineering issues that others could quickly and efficiently address.

      I think I would approach Babcock and Wilcox or Combustion Engineering. They have many decades of engineering experience in extracting energy / electricity from steam. I would see a centralized utility power station as the best first bet for implementing this technology. Get a royalty on every MW sold.

      • Robert

        If Mr. Rossi is worried about “corporate lawyers”, he needs to take the initiative and write a standard contract for licensing this device so it is done according to his terms. Yes, this takes time and money, and feels like letting a proctologist perform a root canal on your wisdom teeth. Still, it lets Mr. Rossi set the terms how he wants them to be set and not the other way around.

        He certainly can set the terms and say “take it or leave it”, and is in a unique position to do just that at the moment. It may not last for long, however. There certainly may be similar processes that are different enough that they could be protected under another patent, yet achieve the same end result.

        • Nomor Fillup

          Robert, based on the first sale, it appears such a contract is in place. Including a significant (ie damaging) escrow defaulting to Rossi in the case of NDA violations.

          A proctologist working on teeth would be a bite in the as$!

        • PatReid

          Just thinking… Going public with a new technology such as this, the first thing that flashes into my mind is what happened to Nikolai Tesla: he went public, and tried partnering up with major players of his day. But then his ideas were first stolen from him, his patents were bought and locked up, he was blackballed, his technology was used to put us in the sorry energy state we are in today. He died alone, near penniless, unknown, and likely bitter, in a hotel room in New York and his devices were destroyed/hidden/locked away by ‘unknown forces’. The guy was a genius, and deserved waaaay better than what he got.

          I hope Rossi keeps going exactly as he is. He doesn’t seem worried if the secrets of his invention are leaked out by reverse engineering, because when [if] that happens, he will personally still be safe [hopefully]. He should be able to continue producing his original version of E-Cat, and benefit from the sales of other manufacturers of his device.

          Expansion will happen. The only danger of multiple versions of this technology should be to Exxon-Mobil, Shell, BP and others’ profit lines. In a world of 7 BILLION inhabitants, it doesn’t seem likely anyone will run out of clients to buy the product any time soon. The more manufacturers, the faster the proliferation and advancement of E-Cat technology.

          Any non-disclosure agreement is essential, but wouldn’t it have to contain some kind of personal protection guarantee for Rossi in it, to protect his physical safety?

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  • pierdonia

    Rossi’s main problem right now is money. To ramp up production he needs to buy the materials for multiple units, he has to hire and pay additional workforce. The profits he makes from selling plants may not be enough to cover these ramp up costs.
    This is the phase most startup companies go belly up, not because the product is unprofitable, but because of the negative cashflow.
    Luckely Rossi’s wife knows all about finances, so she must be well aware of the risk.
    Rossi has to ramp up fast, since he has no patent protection. To do so he needs a lot of cash, either from secret investors or by selling shares in his company.

    • Josh

      But he said his goal is “to make cheap and clean energy”… not money, so why does he have to protect his invention so much? If it’s real, dozens of companies would be happy to pay him a licensing fee with no cost to him up front… then he would achieve his goal of “cheap and clean energy” for the masses. It would be so much less work than his current “game.”

      • Robert

        I would be happy to pay for a licensing fee, with an NDA and other legal features in terms of keep “trade secrets” or anything else that Rossi wants to put into a contract to keep things under control. I know some people who have real money, and wouldn’t mind joining me (if not necessarily Rossi) if I could prove to them on my own that this thing really works.

        I have to agree that the over protective nature of what Rossi is doing here now can backfire. He could be a very wealthy person in a very short period of time simply by letting more people into loop. Contracts could be written up that specify production standards and safety requirements used in the production process, as well as step by step procedures on how to build this.

        While I’m not a conspiracy nut by any stretch, I do think that the longer this festers in the court of public opinion, the more likely that it will be regulated out of existence simply because of the ugly “nuclear” word attached to it. Making a big splash and then suggesting “hundreds” (better “thousands”) of people will be unemployed and go cold in the winter if this device is made illegal will be enough to keep it from being regulated away.

        Either this device works and can be mass produced with licenses by dozens or hundreds of companies, or it is all a fraud. Keeping this close to the chest is going to make this seem much more like a fraud.

        • Nomor Fillup

          Excellent suggestions Robert. I suspect that Rossi’s control issues stem from past experience with energy related suppression. By staying within Italy and it’s UN recognized patent protection – and with a slow, steady rollout of 1MW units, he can limit opportunity for nefarious behavior.

  • Charles SWVA

    This is a plea from me that the customer submits a statement to the public (through a nationally known and respected body if deemed necessary) stating that the E-CAT is real, tested as promised on Oct 28, 2011, is still working as advertised (within limits) and is in use or being prepared for use. It would help if Rossi submitted the same request. Remove all doubt.

  • exon/mobile

    If this thing works like it seems to we will crush this technology in the blink of an eye.How dare you interfere with our profits.

    • Shell

      If this works, we will use it to make even more profits, stupid exxon ;P

      • Nomor Fillup

        No. You both have had enough. Go to bed before you get a belly ache.

  • Josh

    If his goal was really “to make cheap and clean energy,” he’d share his secret and let many people start building reactors/boilers/generators using his process. His goal is either to make money or rip people off – of which the former makes no sense because if his technology is real, he’s going to be rich and famous beyond his wildest dreams no matter how he plays his hand.

    • Nomor Fillup

      Josh, Mr. Rossi has stated many times his “goal” is to bring low cost energy to Earth’s population. He already has the other stuff.

  • Gordon Docherty

    Dear all,

    here in the UK we have a system of ePetitions. If more than 100,000 sign up to an ePetition, Parliament in the UK is required to bring up the issue and debate it in Parliament. If you agree with a petition, to sign up to that ePetition you need to be resident in the UK or a UK citizen. So, I have now raised an ePetition “Test and Report on Andrea Rossi’s E-Cat” that calls for a device to be purchased and properly tested – and Reported On in Parliament. So, here is the link if you want to support this idea (pass it on):

    http://epetitions.direct.gov.uk/petitions/21590

    In the ePetition, I point out both the downside risk – purchase + test costs – and the upside risks. What I do not mention is that the “official figures” for meeting the UK’s green energy commitment for CO2 reduction by 2020 are £200Bn for new offshore wind farms, £10-20Bn per site for 6 new nuclear power stations, and £25Bn (or 10x if buried) for wiring those coastal facilities into the spine of the national grid in the UK, resulting in bills that are expected to top £3000 per year per household (alone) for heating and lighting by 2020 (currently they are around £1200 per year per household and that is already too much for many old and young people). Add to that average fuel prices of over £1.33 / liter (or more) (over £6 or $9.70 / gallon) at the pump – costs added to any item delivered anywhere by road or rail), and investing in testing a Rossi device (or 2 or 3 or …) that has passed muster on every test undertaken so far is just common sense.

    So whether an avid supporter, a skeptic, or a even “nay-sayer”, please show your support for encouraging serious consideration of this “already on the table” alternative by supporting the e-petition if you live in the UK or are a UK citizen – after all, if the nay-sayers are right, buying and testing an e-cat is a tiny sum compared to the £300-£400Bn (that’s £400,000,000,000) that needs otherwise to be paid out, whereas, if the avid supporters are right, well, that’s £400,000,000,000 to spend on something else (like helping old people survive the winter – and, the worst aside, we will all be old one day)

    So, if you are really concerned about encouraging healthy debate and a broadening of horizons on this issue, and not just adopting an “every way you look at this you lose” attitude), please encourage all those you know, who can, to sign up to this ePetition:

    http://epetitions.direct.gov.uk/petitions/21590

    Yours faithfully and in hope,

    Gordon Docherty

  • Susan

    Even if the evidences are getting smaller and smaller his mouth is getting bigger and bigger …

    • hampus

      how are the evince getting smaller? don’t they stay the same?

      • hampus

        evidence*

  • Matthew

    I’m becoming more and more sure this IS real…For one the generator was only 350 kw based on said Rossi and this generated 479 kw. So that is 129 kw more then could of been generated. That’s assuming it was on even through the gauge shown 0 powering going in. So in that case the entire 479 kw would be cold fusion.

    I think once he gets this to generate electricy that he loops it, so it can power its self. Its output can go back into its input and power it.

    • Hampus

      If he was steeling power he could have just stole it from the grid. The oct 28 test was not at all for the media, Mats Lewan and the other journalist had no controll what so ever. The test was done by an complete outsider who is an engineer for NATO, it is him we have to believe, and I think we can.

      The best test so far is the oct 6 were Mats Lewan and others could test the machine and open it up. So we now have 2 test that were done by outsiders not by Andrea Rossi. I am also 100% sure this is for real but that is because of all the outside support Rossi have:
      Mats Lewan
      Sven Kullander
      Hano Essen
      Focardi

      Plus all the other 40+ experts and journalist that have seen the device and tested it.

      • Robert

        There have not been any “outside” tests performed by other researchers when Rossi didn’t have at least some control over the device. The other “experts” and “journalists” (being very charitable on that term) certainly haven’t been given the chance to take one of these devices and let it run for awhile, carefully measuring the inputs and outputs, and being in a position of any kind to make a judgement as to if this device is real or a fake.

        For that matter, I’m not even convinced that this “customer” on October 28th was even real, and there certainly is room for doubt in terms of anybody thinking of investing into Rossi’s company, much less buying one of these devices.

        I’ll accept the reality of this device if I see it running independent of any other power source for a prolonged period of time in turn powering other devices. I’m not against a “starter” unit running off of petroleum products or some other initial power source, but even that must be incredibly under sized for the application being demonstrated… like a half dozen “AA” batteries being used to operate an automobile. Show me something like that, and I’ll be a believer.

    • carlo cappelletti

      And if output goes input there’s a means of rapidly full controlling the energy demand variations, lowering or increasing energy production in a short time!

    • Sanjeev

      I do not see the logic of doubting that the genset provided the whole output.

      Why would a fraudster place the genset in plain sight, allow people to video it, allow customer to take measurements of it, etc etc etc ?

      I was expecting a stronger and intelligent skepticism in this case :)

      • hampus

        yes, thank you for that. the genset is like the dumbest critice ever. When it comes to the 28 oct test we just have to trust the NATO officer that he did the right measurements, and I think he had controll over were the power from the genset went.

      • http://none Jack T.

        One possible motive would be internet advertising. Notice alot of ecat sites popped up overnight to capitalize on the chatter about this invention?

        • http://none Jack T.

          I will add to that the ultimate irony is that solar and fuel cell companies advertise on this here site. Imagine that! If this thing is real they’re toast.

          • Sanjeev

            I believe google adsense does that !
            These cos don’t know where their ads appear probably.

    • Roger

      The plant sold can run at 1 Mw if it is stabilized by the use of input power but can be run safely in self-sustained mode (no energy input except to run the pumps and fans) at lower power hence it was run at 479 kW per the customers request.

  • Johannes Hagel

    The first plant was sent from Bologna to probably US and I suppose by ship. Or is it light enough for air cargo? Has it already arrived? Has the customer put it in function already? I suppose Rossi must be in contact with him. Is the customer still satisfied? Do we have any information of this kind? Would be important!

    • pierdonia

      It is much more likely that the customer is an international Italian company with strong links to NATO. Check the participants list.

      • http://none Jack T.

        If it’s real I would put my money on NextEra. They’re based in Miami where Rossi had a house and have offices in Manchester and Boston. They’re also closely tied to the military because they’re putting missle defense shields, oops I mean wind generators up all over the place. They hire alot of ex-military guys because they are a quasi-military organization.

    • Roger

      All good questions and we would all like answers but the customer has asked for and received from Rossi confidentiality. No doubt there will be a sale to a customer who is willing to crow, and strut and talk about their new acquisition. In the mean time we all wait with abated breath.

  • Martin6078

    World Changers:
    Johannes Gutenberg,Charles Watts,Nikolaus Otto,Thomas Edison,Nikolai Tesla, Albert Einstein, Otto Hahn,Wernher von Braun, Bill Gates, Andrea Rossi. Who is the next to invent Antigravity or Hyperspace?

  • Matthew

    If this is true then fossil fuels are over. Expect a huge fight, but this will destroy the coal, oil and natural gas industry without much problem.

    • PersonFromPorlock

      “Destroy” is a little strong: hydrocarbons still have a considerable role as industrial feedstocks.

      • Roger

        There will still be a use for petroleum products for manufacturing plastics and roads, roofing etc but about 60% is used in transportation.

        • peter

          hydrogen or electricity made with the e-cat will transport us very well..

    • Sanjeev

      It will not destroy petroleum industry. It will create just another option for small and medium heating applications.

      There will not be a ‘huge fight’, only the good old competition.

      Please note that petroleum that thousands of applications, a water heating system would not replace them all.

      You will need a Universal Assembler or Utility Fog to replace oil stuff completely, and these are obviously in the realm of science fiction now.

      • daniel maris

        Oil will certainly be needed for plastics to begin with.

        I think the introduction of the E Cat could see a rapid change to electric-powered cars if allied to the 80% cheaper Toyota 1000 Km battery can be realised.
        I doubt we would revert to steam powered cars, albeit E Cat powered. For one thing, you need a lot of on board water.

        • Sanjeev

          Water is only a starting point IMO, there can be many other mediums that can be heated up. The medium of water is for the demo/prototype purposes at best.

          For cars, the heat transfer agent can be some other liquid with superior qualities, or a gas or air.

          I can easily imagine a car/vehicle running only on air, perhaps hovering a bit, air being heated intensely in cold fusion chamber.

          I can go on and on, but its too early :)

        • Rockyspoon

          High-tech steam engines recycle their own water through a radiator, hence no need for lots of water (an occasional gallon is sufficient). Steam engine technology in the form of a Rankine Cycle heat regenerative external combustion engine is already on the market and (I really believe) could be retrofitted with a series of E-Cats instead of liquid fuel as the heat source (“filling up” every 6 months or so would be a motorist’s dream, wouldn’t it?) It needs no transmission and no oil lubrication and generates up to 3200 psi: http://www.cyclonepower.com/works.html

          • rob tso

            One big problem with using this for cars is the startup time. The stuff in the reaction chamber has to be heated up to a certain high temp before the reaction takes place. So industrial power, home heating and power generation apps make a lot more sense.

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  • Hampus

    This is the best way to get cold fusion out to every1. He invented the ecat and ofc he wants to have controll over its future. He have a lot of experience with starts ups so I don’t see a problem with this.

    Like he said, let’s make some jobs :). It seams like this is the end of the worlds economical problems.