The most recent Leonardo Corporation update is the most detailed we have had in some months. I think it makes a few things clearer regarding the business strategy surrounding the E-Cat.
First, it seems to me that in terms of business strategy, the licensee is the one who is calling the shots. We see something quite different developing compared to Andrea Rossi’s original plan which was to manufacture smaller E-Cat units of varying sizes being shipped to retail customers. Rossi says that will still happen, but further down the road, after larger plants have been built and have been demonstrated to be operating successfully.
The fear of reverse engineering is still present, and probably has increased, given what is at stake financially. My guess is that the licensee is fully aware of the importance of the technology they are now in possession of, and they want to consolidate their position as the world leader in this new technology.
Plus, I would imagine they have invested a great deal of money in first, obtaining the manufacturing and commercial license from Leonardo Corp., and then in building up a manufacturing base. If the invention was quickly copied and built by competitors, they would lose a lot of money.
Many people have commented on the fact that the licensee is still anonymous. I think that is to be expected. I don’t think they will reveal their identity while they are still in the process of building the first plant. I think the soonest they will reveal themselves will be once they have connected the E-Cat plant to the grid and start feeding electricity into it.
They may have little choice in revealing themselves at that point because if they are a public company (we don’t yet know if they are, but I think it is a possibility), they would have the legal obligation to make such a material development public to investors. I would also imagine that they would have to at least inform the grid authorities how they are producing their electricity. Rossi has actually said that grid authorities are already aware of what they are planning on doing.
However, one thing we don’t know is which country, or even which continent, the licensee is operating in. Laws and regulations differ from country to country, so maybe they will be able conceal themselves longer term. We will just have to wait and see.
Another point of interest to me in the January report was Rossi’s statement that “SSM (self-sustain mode) can be reached more easily with high power assemblies.” He doesn’t explain why, and I have no idea why that would be the case, but it may be that it would be premature to ship smaller E-Cats if there was a chance that reaching SSM in them would be problematic.
I asked Andrea Rossi yesterday about when the assembly of first plant might be completed. He replied, “I think I will be able to answer your question within a month.” So hopefully we get more news soon.
