Today on the Journal of Nuclear Physics, Andrea Rossi revealed a pricing strategy for heat sold to customers from E-Cat plants. He was asked by Robert Dorr to clarify what the discount of E-Cat-produced heat for customers would be compared to the current fuel sources they are using.
Here is Rossi’s response:
August 14, 2018 at 5:34 AM
If our Customers now are spending 100, with the Ecat plants they will spend 80 and the price will be indexed with the variation of the market price, to maintain the 20% of earning for the Customer.
I followed up with a couple of questions of my own just for clarification:
August 14, 2018 at 6:57 AM
When you say that the cost of E-Cat heat will be “indexed with the variation of the market price”, do you mean:
1. That it will always be 20 per cent less expensive than whatever the customer would normally use (e.g. natural gas)?
2. That if the price of (for example) natural gas rises, the cost of E-Cat heat will also rise?
August 14, 2018 at 8:58 AM
So it seems that Leonardo’s plan is to make sure that E-Cat-provided heat is always cheaper than alternative sources. From Rossi’s answer to my second question, it would appear that the indexing does not follow price increases in competing fuels, just price decreases. Whether a 20 per cent discount will be attractive enough to entice customers to contract with Leonardo remains to be seen (assuming the plants work as described).