Nonsense. Energy can not be created out of thin air - some people just don't get it.
This is just some weirdos screwing VCs, let them have their fun (both of them).
If I had invented such a thing, I'd build
- a big power plant and sell the electrical energy
- smaller power plants and sell them to house owners etc.
The fact that they're not doing this instead of just talking about the great technology shows that they have nothing.