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Well, I'm calling BS on the water for fuel concept. Oh, it sounds wonderful, who doesn't want free fuel?? But...
In order to burn the hydrogen, you need to separate it from the oxygen that it is bound up with to make water. In order to do that, you MUST put energy into the system. The exact same amount, in fact, that you will get from burning it.
Every system has losses and not one is 100% efficient. Because of this, you will NOT get free anything from this idea. It may chug along for a while, a short while, until the losses overcome the system, then it slows down and stops.
THERE IS NO FREE LUNCH!!
Perpetual motion machines (of which this is an example) simply will not, can not work. Period, end of story.
By the way, the oxygen in combustion reactions is not a catalyst. A catalyst is defined as a substance which accelerates or enables a reaction, without being changed by that reaction. The oxygen is an active participant, and becomes bound up chemically with the fuel during the combustion process.
Thanks for listening.
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