Rossi on the Challenges of Developing E-Cat Plants

Quote from JedRothwell

It isn't secret! It is in I.H.'s Motion to Dismiss, which is a public document. It better be truthful or they will get in trouble. There is no detail, but the statement is explicit: "the measurements were flawed and the instruments unsuitable." I told you specifically that the flow meter was flawed. So were other instruments. I told you the data itself was flawed, with 0.0 bar replacing the real numbers. There was much else wrong with the data.

I'd be careful. This was dicta in the Motion, and, no, it could be total BS and they would not "get in trouble." Yes, it was a public document, so they wanted, I suspect, to toss in a little damage control, otherwise it would look like they were only making silly technical arguments.

(The "penalty" for "total BS" in a motion is that it might set the judge off, which is not a good idea.... but that would be harmless, even if wrong. And, of course, it may not be wrong.)

The IH Answer is due August 2, one week. That is where the fireworks might start going off.

Quote from IH Fanboy

Taking your characterization of Rossi's trying to fool people at face value, he was quite successful in fooling IH sufficiently that IH would induce investors to infuse the company with tens of millions of dollars. And he was also quite successful in fooling the ERV with a career of achievements on the line to write a report showing a COP of 50. And hundreds if not thousands of outside observers. Seems like he has fooled quite a few observers. If you believe in the fooling / fraudster theory.

The possibility of insanity must remain on the table. We don't know what the ERV report says, we have only rumors on that. What "thousands of outside observers"? Magicians run magic tricks with millions of viewers. It means nothing. We do not know that IH was "fooled." All we know is that they did invest $11.5 million, plus expenses. See below.

Quote from axil

But way [why] didn't IH say something before Rossi sued IH? What did IH intend to accomplish in the face of that scam? Please tell us what the end game of IH was exclusive of Rossi's lawsuit. This behavior of IH does not seem to be natural.

I came up with a theory of IH strategy that is rather different from what most imagine. Back up.

By the end of 2011, it was obvious that Rossi was not about to allow any independent testing. He had been acting to prevent that since before 2011. Anyone who did due diligence for a major investment, with access to resources like IH had, would have known this. So why did they not insist on an independent test?

The answer is obvious. Rossi would have immediately stopped talking with them, he had done this many times, walked away from serious investors -- or governmental agencies -- with deep pockets. IH, observing the state of the field in 2012, realized that it was essential to answer the Rossi Question, not just guess. Investment in normal LENR research would seem foolish if devices are about to show up at Home Depot next year. Rossi had said he would sell the secret for $100 million.

So they offered him $100 million! We do not know the genesis of the Agreement. It is obvious that much of it was written by Rossi, though, it's written by a "smart amateur," with all the mistakes that an amateur might make. And IH's position was, "whatever you say, Andrea, just show us how to make devices." It must have become obvious that something was off by the end of 2014. By then, they knew that the Lugano test was punk. They had run their own tests, and the devices just didn't work! From Dewey's comments, by 2015, Rossi was refusing to help. However, they would still hope that he might decide to show them the secret. However, by 2016, that hope became far too thin, and going ahead and raising $89 million for the payment was "beyond reason," without the IP, and they would have had to deceive investors to raise it.

Yet they still want the license, and there is an obvious reason: it is a hedge. It protects their other investments in LENR research from a Rossi surprise. So if Rossi really does come up with devices that work, they have the rights to them. On Planet Rossi, they imagine the licenses can be cancelled just on the Licensor's say-so. No. Unless that is provided in the Agreement, the license stands. The $89 million is a conditional payment, the license was created without it, and so it's a debt at most. If it's due, and there are possible reasons why it might not be due. It might not ever be due. (And then there is equity, and if IH were making money hand over fist on the IP, Rossi would have some solid equitable grounds to recover payment.)

And others think that Rossi could get around this by creating a different product. But if the new product is a evolution from the old (and it appears that Quark-X would be, if it is not just a fuzzy photo), the Agreement covers it.

It is clear to me that IH let Rossi know he was not going to get the $89 million. When they told him, I have no clear idea, but he filed the lawsuit the day *before* the payment would become past due. If he thought they might pay him, he would not have done that at all. In addition, it took time to prepare the suit. If their intention was to stiff him, they'd have employed delaying tactics, they would not have telegraphed their intentions to him. They might have said, "we need time to study the report." They might have said, "we need more time to raise the money." They might have said, "There is nobody here in the office who can respond to this issue, they are off on a project in Timbuktu and out of phone communication."

They were playing a tricky game. Their goal was for Rossi to reveal the "secret" to them. Had he done so, if the devices had actually worked, made according to his instructions, they would have been very happy to raise the $89 million even if there were possible problems with the 1 MW test. (Or, at least, they would have proposed some compomise.)

As it is, we do not know what communications existed between Rossi and IH (beyond Dewey's fragmented leaks). If they allowed the test to proceed under protest, for example, they estoppel argument might fail. The Test might be invalid.

Now, Axil thinks that IH behavior "did not seem to be natural." Damn straight it wasn't natural. Most people would immediately reject the idea of paying over $10 million to someone who looks like a scammer, and Rossi did look that way at that time. Mats Lewan points out that Rossi appeared to be deliberately creating that impression -- to discourage possible competition.

However, the IH plan worked, and worked well. As a result of their bold move, Woodford tossed in $50 million. On Planet Rossi, that is interpreted as Woodford being influenced by the successful 1 MW test, though that test had not been running long when Woodford invested. Woodford claimed to have been looking at LENR for years. They would have known that Rossi would be suspect. It makes complete sense to me.

IH established their credentials by putting up that $11.5 million. The Woodford money went into a new limited partnership organized in the U.K., where Woodford is located. If IH had deceived Woodford, failing to disclose concerns, they would be in very hot water.

And Rossi cannot touch that $50 million, and it's obvious. He's pissed! The snakes! And if Rossi does not teach IH how to make devices that work -- he still could, if he knows how -- and if IH can't get the money back from Rossi, IH goes bankrupt and, no, Rossi's attempts to pierce the corporate veil and go after Cherokee Partners will fail, the judge only allowed Cherokee to continue as a defendant based on Rossi's errors about Cherokee being the owner of IH. So if IH goes bankrupt, the investors have a tax loss. That is part of how limited partnerships work. And they have ownership in IH Holdings International, Lts., and I'm not going to attempt to fully disentangle that. Woodford was cool with it, obviously, so ... why should the rest of us complain?

The Answer is due August 2, that's in a week. Popcorn, anyone?

Quote from IH Fanboy

Why would the heat need to be ventilated if the heat was being used in an endothermic chemical process (as has been apparently claimed by people who caught a glimpse of the activities on the "pretend" customer side)?

There is no known "endothermic chemical process" which would "use up" much the heat. This explanation is proposed by people who are clueless about chemistry and endothermic reactions. Yes, you can store heat energy chemically. The efficiency is low. Most of the megawatt would still heat the equipment and the room and need to be exhausted.

Who saw that? I see these claims, almost always without references. How could you tell what a process was doing by a "glimpse"? Electrochemical energy storage (of electricity) is at best about 90% efficient, but that is electricity, which can be converted readily to chemical energy through electrolysis or battery activity. And then what is all that energy stored in? How much stored energy product would need to be moved. And, ah, if you have stored a lot of energy in a chemical product, that product becomes dangerous.

Okay, it was a "secret process" that nobody knows about. With a secret company that nobody but Rossi's attorney knows about. And with this, you can make up any story you like and cling to it as long as you want, continually inventing rationalizations. Good luck.

Thermal energy storage able to absorb a megawatt of power without constant flow of goods would be worth billions all by itself. (Remember, this is low-grade heat, steam temperature. You could store higher-grade heat as hot objects with high specific heat, insulated. But it would still be a lot of stuff to move.

Quote from JedRothwell

I have no idea why they do not release it. You would have to ask the I.H. lawyers.

Weaver was quite clear. They will release information when it suits their purposes, and IH doesn't give a fig about opinions on the blogs.