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Fuel from water is nothing new, it's called hydrogen. This has been done for a very long time, the only real game changer is they claim to have figured out how to do both steps in the process at once, which finally makes it economical. It still takes a lot of energy to do this process, so they will still need a way to do that.
They won't be able to use this for cars anytime soon, in fact the only reason it's likely now looking more economical for the military is due to the cost of oil today and what it's cost will likely be 20 or 30 years from now.
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