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Water makes the perfect fuel source.

It's not -- at least not in the usual sense of a fuel being a material which can be used to supply energy. Water is the *end* product of combustion after the energy (of hydrogen and oxygen reacting) has been released. There is no more energy to be extracted from water. All you can do is to split the water molecule back into its constituent hydrogen and oxygen atoms but that process (usually by electrolysis) takes more energy than the direct combustion of hydrogen supplies. Even if you could split water perfectly efficiently you would need to supply exactly the same energy that you get back when you burn the hydrogen to recover the water. This is simply conservation of energy (the 1st law of thermodynamics) at work. And in practice, the 2nd law of thermodynamics comes into play also, which says that in the real world no process can operate completely efficiently. Entropy always increases, and so you can never fully recover the energy put into a process that ideally is reversible. So you would never, even in principle, be able to recover the energy costs of splitting water by subsequently burning the hydrogen produced, as claimed by the promoters of the "water-fueled car":

It [water] is comprised of two hydrogen atoms and one atom of oxygen. When the water molecule is separated into its two component atoms and oxidized as fuel, the result is equivalent to an energy output that is two and one half times more powerful than gasoline.

Whoever is promoting this is just trying to scam investors. You might equally well claim that carbon dioxide (the end product of fossil fuel burning) is itself a fuel, and that you could make carbon (coal) by simply splitting the carbon dioxide molecule. You can't -- without expending a lot of energy, more than burning the coal would supply.

It's the same as saying the a dead battery is an energy source -- the catch is that you have to recharge it first, and that takes all the energy (and more) than you will every recover from any future use of that battery. There is no free lunch.

This is a scam.

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