Why Rossi’s Fast Track Path to E-Cat Commercialization May Not be Impossible

Andrea Rossi has been talking in a very ambitious way lately. His plans to launch production with a million E-Cats later this year have taken even staunch LENR and E-Cat supporters by surprise. Designing, manufacturing, distributing and marketing a million units of anything is a huge undertaking — but when you are talking about a world-changing energy technology, it is difficult to see how you can accomplish this in just a few months. Rossi has said that he hopes to start production in the Autumn of this year — but if you read his remarks on the topic he is allowing for possible changes in schedule, and it would not be surprising if he moved back the projected launch time.

One of the big questions that arises is whether Leonardo Corporation has the funds to accomplish all of its goals. When asked about this recently, Rossi responded “be sure, we are a well fueled warship”. As far as funding goes, we don’t know anything about outside investment that has been made in Leonardo Corporation. My sense is that Rossi, who seems to want to keep in firm control of everything connected with the E-Cat is going to be very loathe to allow outside investors to have a significant stake in his company. Indeed, investors with deep pockets may put off by Rossi’s lowest-possible-cost strategy of marketing the E-Cat.

What Rossi does have going for him is his pre-order strategy. We don’t know how many people who have signed up — but Rossi said they met their goal of 10,000 a long while back. By this Autumn there may be very many more. If 100,000 pre-orders converted to actual orders, Rossi would have $100 million (assuming an E-Cat costs $1000) which could go a long way to funding startup production.

Another thing to remember is that Rossi has consistently mentioned that he is going to be outsourcing production as much as possible. The E-Cat itself is not a hugely complicated machine — basically a reactor core connected to metal plumbing, along with electronic controls. We know that National Instruments is supplying the electronics, and everything else (except for the proprietary fuel preparation) could be manufactured by any competent machine shop. Of course there would need to be assembly plants for the final building, testing and distribution.

Rossi has recently announced how he will build his installation and servicing team — use established contractors who are already working in the field who are willing to sign up to be agents for Leornardo Corp.

Marketing may not be a huge challenge either. A working E-Cat will market itself via word of mount and internet discussion — especially if the E-Cat is the only game in town. The low-cost strategy will help tremendously. When Rossi was advised by a JONP reader recently to put a decent markup on his products, he responded, “I prefer to keep prices as low as possible, also to make this tech at disposal of every pocket. A revolution must be popular, to survive.”

Rossi is not acting like a conventional businessman here. He realizes that he has a revolutionary product in his hands and is apparently planning to go about commercialization in a revolutionary way. While achieving his goals might seem improbable, they may not be impossible.

  • eric

    Classic scam. Post continuous bullshit, about a bullshit product, with bullshit tests and secret bullshit buyers, until bullshit gets cross posted and picked up by lazy media, attempt to earn legitimacy via associated instead of proof, take pre-orders for future bullshit. Cash in. Disappear.

    Obvious scam is obvious.

    • blah

      X is obvious because it’s obvious. Ok, that makes sense. I don’t think Rossi’s consumer effort will work because of the immense number of moving parts one has to make work to sell into such a market in which he has no experience. He’d do much better to license the home version e-cat to the GE’s and Siemens of the world and concentrate on manufacturing 1MW units. That, of course, depends on whether the machine actually works in a commercially viable way.

  • Lévi

    another incredible developpement, it looks like there is a ‘tsunami’ of technological innovations in the energy market. We may get somewhere…
    http://www.cellaenergy.com

  • Buck

    I want one , but if the big corporations can find a way they will kill his product like they did Teslas .

  • David

    This high volume production and low cost to consumers philosyphy is not new. It is how Henry Ford sold his first few million automobiles and it is how the US was able to produce so many war impliments during WW11.

  • Alexvs

    Fast Track Path to E-Cat Commercialization is perfectly possible. E-Cat Production is dubious. E-Cat Working uncertain.

    • http://none Bo Miller

      When one considers how Dr. Tesla’s inventions-at least the ones we use everyday- were altered to
      allow greedy monetary “supporters” to put a meter
      on his otherwise almost free energy ideas , I can easily appreciate his total reluctance to allow
      other people to “invest” in his operation.

      Just look at how the Tesla Motors Company has
      been sabotaged by large “investors” !

      • OzzWorx

        You mean like the US Government “bailout”. Don’t get me wrong, I like the Teslas. I don’t think I should pay for cars I could never afford.

  • thomas

    It’s now three months since Rossi’s “public demonstration,” which proved nothing because there was no disinterested third party to verify the claimed results. Rossi says the customer placed an order based on the test but he won’t say who the customer is so we can’t confirm if that’s true or not. It would be a very simple matter to organize a valid test of the device. Since that has not been done to date, it’s safe to assume that it doesn’t actually work.

    • EnergyGuy

      On “it’s safe to assume that it doesn’t actually work”, we are to assume no such thing!!!!!!!!

  • RedRyder

    I would guess that 20 kw would heat a 3 bedroom ranch in the Northern US. Maybe less considering the unit may not be pulsing every half hour like a traditional Boiler. If I understand correctly, the unit would remain on always. This could be hooked to a insulated 300 gal plastic storage tank for regulating zones maybe?
    I suppose one will need to wait a year before shopping for any related parts for hooking one to a radiant heating system in the home. Cant wait for the Spec. Sheet on it. But, I feel like a Kid and I want one NOW!

  • RedRyder

    The Mayans did not predict the end of the world.
    They did predict that Humans path or should I say, “way of life” will change forever around this time period in Human History and or Future. The Calender, have seen and touched it.
    It is round so you may look in the past as well as too the Future.

    • Afonso Melo

      That’s a good reason for Rossi to launch the home E-Cat on December 21, 2012.

      A great publicity coup!

      He will fulfill the Mayan prophecy, and that will be very good for sales…

    • SJvet

      I’m not too worried about what people who disappeared from the face of the Earth predicted about anything.

  • Jack

    Just guessing: I guess the eCat will be assembled of common industrial parts and electric controllers which the National Instrument already had at hand, maybe produced in China. I guess they were only resolving the issue of producing the nano nickel cheaply and in great quantity and maybe a mechanism to somehow protect it from copying it. Some engineers at NI might have solved it shortly (maybe using a mill rather than lasers) and bang! … Also watching Rossi’s eager feelings on competition it seems that the thing is real and he has spent quite some time fighting against many unfair people who tried to stop him, steal from him, etc. For me that pretty much indicates it’s real. … What I just can’t understand is that any of his partners let him talk so much and without much restrictions. That is a bit strange. If there were big investors behind they’d probably want him to silence. But maybe Rossi’s position is of king’s here. Or they might all be in a serious rush, knowing that 20 other teams are on their back, and thus just rush to production and talks do not matter. … My last idea is a conspiracy – Rossi might be a strange but a legit-looking marketing figure with a complete conspiracy behind him.

  • arian

    from http://e-catsite.com

    U.S. Department of Energy official Al Opdenaker in another e-mail in response to an LENR inquiry. A member of the e-Cat Facebook community (Cold Fusion “Andrea Rossi” Method),David Lang, recently wrote Mr. Opdenaker thanking him for the open-mindedness he expressed regarding LENR in the e-mail exchange posted on this site a couple of weeks ago. In response, Mr. Opdenaker wrote:

    “I was a total skeptic in 1989 with P and F. It sounded like total craziness to me. I have switched to a willing to see how things go with the Rossi device and several other similar ideas that are currently out there. I have tried not to get wrapped up in whether it is cold fusion or LENR or even magic if it can be demonstrated to work, I will accept it. Several people I respect say that the Rossi device can lead to real advances in energy in the next 10 years or so and that sounds like really good news for all of us. The proof needs to be in the pudding as they say. Let’s look at the experimental results and the theoretical backup and it can be judged from there.”

  • arian
  • Paul C

    Dr Rossi is a seasoned business man and looks it, he has seen everything in his years and is handling this extremely professional with all the haters, he knows there are many more people who believe in him and his e-cat.

  • the snake

    What a change in attitude within a year or so. Rossi played the role of a very humble and idealistic kind of researcher focusing on the scientific discovery. Now he’s completely greed driven with ever more announcements not followed up by product demonstrations. I believe this will end up in a snake oil investment scheme.

    • http://usgovinfo.about.com/od/rightsandfreedoms/a/How-To-Petition-Government-Online.htm Alex

      Your handle name precedes you, He still seems humble to me. He already stated the demonstrations were over, unless you are confused about that. His marketing strategy is parcel blogging. Little bits here and there, to keep people interested, is actually sort of brilliant. He has not accepted any money, or taken any orders of promise. That doesn’t fit a greedy persons M.O. In the end you have a decent chance of being correct in your assumption, but you can’t prove it wrong, so you have an equal chance of being wrong. I believe in government conspiracies so I naturally cheer for the underdog, so I flipped my coin to believe Mr. Rossi, and think the exact opposite of you sir.

      • http://usgovinfo.about.com/od/rightsandfreedoms/a/How-To-Petition-Government-Online.htm Alex

        proceeds***

        • Alexvs

          Was ‘precedes’ incorrect?

  • Afonso Melo

    Now I’m scared: it’s everything or nothing.

    Now, there are only two options:

    – Andrea Rossi is a sociopath, and a compulsive liar, and all of this will end in tears.

    – Andrea Rossi is talking the truth, and we are going to have millions of home E-Cats produced in large scale by the end of 2012.

    There are no other options now.

    If it’s the second option that is true, I think that a very good marketing strategy for Andrea Rossi would be to make the official launch of the home E-Cat to the market in the day of December 21, 2012…

    That would be a genius marketing strategy… The “Mayan calendar” would be a great “sales man” for the E-Cat…

    • http://usgovinfo.about.com/od/rightsandfreedoms/a/How-To-Petition-Government-Online.htm Alex

      If you can fool someone to think the end of the world is this year, than I can see where linking the launch might make some sales, but that’s sort of morbid.

  • arian

    Book: E-CAT The beginning of a new era

    written by Camillo Urbani

    Camillo Urbani profile
    I am a physicist and in the last twenty years I have devoted myself to study the phenomenon of cold fusion and free energy. Given that the main problem is the lack of a shared theory that can explain the phenomenon, I thought I’d share my knowledge. In a forum of more ‘followed on the subject (www.energeticambiente.it) I opened a thread that has had some success with the public in which I wrote last year.

    In the quest to make myself understood even by less experienced, I wanted to explain some basic concepts of physics to allow everyone to understand what he was talking about and why science can not accept the cold fusion so easily. I then introduced some concepts of quantum mechanics in this field can help us to understand something more ‘.

    Since the work was interesting I thought I would group the more ‘relevant in a book. Of course there is no intention to give an official theory, but just some ideas to give the reader a chance to get an idea. I think anyone interested in reading fluently and find information. I hope that disclosing this information may be of interest, and help the cold fusion to be something a little ‘less mysterious.

    http://www.ecatnews.net/wp-content/uploads/2012/01/E-cat-english.pdf

  • Martin

    I must say I do like Rossi’s attitude to selling his e-cat, pile em high, sell em cheap, that’s the way to keep the competition out – having said that, I’d like to think the components are of European / American manufacture…

    • OnTheWaterfront

      He’s definitely piling something high.

      • Steve Robb

        Please give us the facts if you have any.

        • Sparks

          The same can be asked of Rossi…

        • Dave

          It’s a *fact* that Rossi has refused to allow an independent 3rd party test of an E-Cat even though this would be the reasonable 1st step for anybody who had a working device. Given this fact you have to assume it’s a scam until Rossi provides some evidence.

  • Masatoshi ONO

    Yeah,OK for feasibility. What about homologation?

    • http://usgovinfo.about.com/od/rightsandfreedoms/a/How-To-Petition-Government-Online.htm Alex

      homo what? Authoritative agreement will come later, scientists are on the edge of there seats whether they believe in the technology or not. There is a unspoken rule in the scientific community that if a technology reaches 10% of the credible populous it is considered a real phenomena. We won’t be able to ignore the technology, when Rossi has been able to sell the 1 million units to the curious first adopters.

  • Kim

    Andrea Rossi
    January 5th, 2012 at 11:47 AM

    Dear Bernie Koppenhofer:
    Thank you for your suggestions, but be sure, we are a well fueled warship.
    Warm Regards,
    A.R.

    Would this “well fueled warship”
    be a Navy Contract?

    Respect
    Kim

  • Gérard
  • daniel maris

    I tend to agree – of course with the usual caveat about it actually working and the incredibly low price being achievable.

    I imagine the casings and big metal parts plus the electronics would be manufactured somewhere like China and brought into the USA for assembly.

    1 million per annum is probably something like 3500 per working day. It might be possible to robotise a lot of the assembly. 12 lines across 3 factories would give you around 300 per line per day – or about 12 per hour or one every five minutes. That sounds much more doable doesn’t it?

    Marketing and distribution/maintenance should not be such big problems.

    I think certification is the real hurdle! Does anyone know exactly what hoops Rossi has got to go through in the USA?

    • Gérard

      Andrea Rossi is with credible and powerful industrialists, barriers to certification will be accepted.

      An exceptional documentary in French about the engineer Diesel invented the diesel engine. You must see it immediately in order to better understand the work of Andrea Rossi, and issues of today, never forget the lessons of history …

      http://www.youtube.com/watch?v=WLuhUr2xu0M

      There are videos in English equivalent here is a link for example.

      http://www.youtube.com/watch?v=OznxAE68OhA

      • daniel maris

        I had already come to teh view that the cold fusion story resembles in many way the story of the development of motor transport.

      • http://GRAZTAI.LT Gediminas

        Mercy Gerard !

        Tress interrese film .
        We have to imagine that Andrea Rossi has the same problems as Rudolf Diesel had. For big enemies he has to prepare big guns 😉