Interpreting the Industrial Heat Press Release

Below is my own interpretation and commentary on Friday’s press release by Industrial Heat announcing their acquisition of Andrea Rossi’s E-Cat. I have broken the text down into sections to make it easier for readers to refer to certain sections if they wish to comment.

1. RESEARCH TRIANGLE, N.C., Jan. 24, 2014 /PRNewswire-USNewswire/ — Industrial Heat, LLC announced today that it has acquired the rights to Andrea Rossi’s Italian low energy nuclear reaction (LENR) technology, the Energy Catalyzer (E-Cat).

Interesting, but probably not important that they called the E-Cat an ‘Italian’ technology!

2. A primary goal of the company is to make the technology widely available, because of its potential impact on air pollution and carbon dioxide emissions from burning fossil fuels and biomass.

An emphasis on the environmental benefits of the E-Cat. We’ve talked a lot here about air pollution problems in China and elsewhere. Then, of course, there is the absence of any greenhouse gasses, which is one of the most sought-after benefits of any alternative energy source. Not, however, that this is listed as ‘a’ primary goal, not ‘the’ primary goal.

3. “The world needs a new, clean and efficient energy source. Such a technology would raise the standard of living in developing countries and reduce the environmental impact of producing energy,” said JT Vaughn speaking on behalf of Industrial Heat (IH).

Environmental benefits again mentioned here, but also JT Vaughn emphasizes the E-Cat’s efficiency which could allow for lower cost energy for developing countries — and expanding energy availability to places where it is currently scarce.

4. Mr. Vaughn confirmed IH acquired the intellectual property and licensing rights to Rossi’s LENR device . . .

In addition to IH now having the intellectual property rights, they are licensed to manufacture and sell E-Cat products, and probably they also have the rights to license the tech to others, which — if they do license — could really help speed up the spread of the technology.

5. . . . after an independent committee of European scientists conducted two multi-day tests at Rossi’s facilities in Italy. The published report by the European committee concluded, “Even by the most conservative assumptions as to the errors in the measurements, the result is still one order of magnitude greater than conventional energy sources” [referring to energy output per unit of mass]. The report is available online at http://arxiv.org/abs/1305.3913.

The Levi et al. report apparently was a decisive factor in IH’s decision to make the deal

6. In addition, performance validation tests were conducted in the presence of IH personnel and certified by an independent expert.

This may be referring to the 24 hour test that was conducted on the 1 MW plant in Ferrara, Italy, before it was shipped to the United States. This test must have been successful, or Cherokee/IH would not have accepted the product. Rossi actually said that the performance of the E-Cat plant during the test was better than the specifications called for. Pictures from that test were published by Rossi, and a person looking very much like JT Vaughn (even the face was blurred out) is shown. Check out this image from Facebook to see.

7. Since acquiring Rossi’s technology, IH has engaged in a broad-based effort to protect it by preparing numerous patent applications related to the core technology as well as associated designs and uses.

It sounds like they are preparing for a vigorous defense of their technology, and this ties in with what Rossi said recently about patent applications being written ‘weekly’. Not sure when we’ll see these patent applications published, but it will certainly be interesting to read them.

8. Tom Darden, who co-founded Cherokee Investment Partners, a series of private equity funds specializing in cleaning up pollution, is a founding investor in Industrial Heat.

A shoutout to Tom and Cherokee (JT is a Cherokee employee also) mentioning it’s environmental credentials

9. He is one of a small group of like-minded investors who are supporting this technology because it could significantly address a number of social and environmental challenges. They have committed to make it broadly available because of its potential for impact.

The investors are interested not only in environmental, but social impact and change

10. IH is considering partnerships with industry participants, universities and NGO’s . . .

As Rossi said, they have not yet decided how they are going to go about industrialization, but it seems like they are open to working with various types of organizations. Before that happens, the walls of skepticisms will need to be broken down. Interesting that NGOs (non governmental organizations) are mentioned — it sounds like they are interested in humanitarian work with the E-Cat.

11. . . . to ensure the technology is developed in a thoughtful and responsible manner.

‘thoughtful and responsible’ are adjectives that are quite subjective. It’s unclear quite what is meant here, but it seems that their focus is on the improvement of society and the environment. How you do that responsibly and thoughtfully is a matter of opinion.

12. JT Vaughn manages Industrial Heat. He is the founder of Cherokee McDonough Challenge, an accelerator for environmental startups. . . .

Cherokee’s involvement with designer and architect Bill McDonough is very significant, I think — he is very well connected, and it’s interesting this would be mentioned in the press release.

13. . . . and a leader in the startup community in the Research Triangle.

Research Triangle is one of the most important places in the world for technological innovation. Industrial Heat folks will be rubbing shoulders with all kinds of innovators from many companies which could lead to interesting developments

14. Companies or organizations interested in partnering with Industrial Heat should reach out to JT Vaughn at [email protected]

The outreach has begun. I wonder who has already been in touch.

15. CONTACT: JT Vaughn, [email protected], 919-743-5727
SOURCE Industrial Heat, LLC

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