Water injection has been known about for a long, long time. Thats all these guys are doing. What happens is that the fine water droplets are turned to steam by the heat of combustion of the FUEL (HYDROCARBON and OXYGEN) the pressure of the steam adds to the pressure of the exhaust gasses and expands against the piston.
In terms of energy the extra useful work comes from thermal energy, ie the engine runs cooler.
The pros of water injection, are increased power output, cooler running.
The cons are, steam is very corrosive, to get it work best you need to inject the water after combustion has taken place, its complicated! For these reasons major car makers don't fit it.
Now the emissions. The CO2 figure on the vid were fixed, it is impossible to produce power by burning hydrocarbons and not produce CO2. My guess on this is that they have made a CO, CO2 trap. They obviously recirculate the water from the exhaust gasses because other wise there would be water coming out of the exhaust pipe.
Don't think these guys are doing anything revolutionary, if you think that your being taken in!
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