If Andrea Rossi’s E-Cat home device proves to be market viable, the implications to the world economy will be mixed. You would assume that individual, home, area, and national economies would be “set free” with the widespread use of E-Cat power plants. But, is that really what would happen?
The use of fossil fuel is integral to the functioning of the current economies. From individual budgets to entire cities, fossil fuels provide the power that keeps electric power plants running and fuel private transportation. In fact, conspiracy theorists put forth that the reason the world is still so dependent on fossil fuels is that the oil companies “buy up” the rights to any affordable alternative forms of energy in order to maintain their grip on the power base of need.
The mining, drilling, refining, transport, and distribution of fossil fuels are the biggest economic factors that shape the planet. Not only are countries’ economies formed around the support systems that provide fossil fuels, but much of the military action that takes place across the globe is over the power that comes with unlimited control of fossil fuels.
Low Energy Nuclear Reaction technology and cold fusion have been the “Holy Grail” of science for decades. From the first nuclear power plant, scientists have striven to produce a source of power comparative to hot fusion, but without the radioactive waste and inherent danger of nuclear power. Low Energy Nuclear Reaction, or LENR technology has come into the spotlight and out again as an unattainable source of power.
However, Andrea Rossi currently has a patent pending for a home-sized power plant, and is already offering for sale a 1MW power plant for commercial use. This type of power is generated by a combination of nickel powder and hydrogen. Both of the fuel sources are plentiful. While nickel powder is toxic, it is contained in a sealed canister that contains the resulting reaction. When the fuel canister is exhausted, it is easily disposed of and replaced.
Rossi himself describes the unit as a water heater. This is a classic understatement of the power generated in theory by the small E-Cat units. The small units would provide heat for an entire home, and heat the water for it as well. The pending impact on the fossil fuel industry, if every home could be heated without coal oil or natural gas, would be crippling.
COLLAPSE OF AN INFRASTRUCTURE
Home heating alone is capable of making a staggering impact on the use of fossil fuels. The chain of supply and demand begins with the individual consumer. All larger infrastructures are built for the support of the individuals that choose to group together in communities. These communities require support systems in the form of governmental agencies, places of employment, and all of the other systems that accompany civilization. This is what creates the supply and demand upon which the fossil fuel industry is built.
If individuals could get basic heating for their homes without the use of fossil fuels, the foundation of the fossil fuel industry would begin to crumble. If the alternative fuel source is limited to small consumption by individuals – which adds up to a massive body of consumption – the fossil fuel juggernaut will falter, but survive. There is still the need for personal and mass transportation, civic, and government power needs, and the support of industry.
These remaining consumers will have to pay more for the power that they receive, which will be passed down to the individual through the costs of other products. The fossil fuel industry is not going to suffer silently. If this industry can’t stop individuals from purchasing their own heating source, they will have to make the income up somewhere. The industry can’t keep its power plants and refineries running without it (at least for now).
It is a possibility that the fossil fuel industry would actually begin to ramp down. Many industries have had to restructure themselves as demand for their products has shifted. However, in many of these cases, it is because the product being consumed is being imported from countries in which production is much cheaper. This causes native manufacturers to suffer, often moving their operations overseas. In the case of fossil fuels, most countries still import the majority of their supplies. The importation of crude supplies of fossil fuels would be reduced, causing the basic areas of production to suffer from economic impact.
The source, transport, and destinations of fossil fuels would have to be restructured on a global scale. All because individuals would be finally able to survive freezing winters with their own personal E-Cat unit, without having to chop wood or give their money to industrial fossil fuels.
Good or bad? You be the judge of that.