From Fuel Cell Today
It is claimed the Water Energy System (WES) developed by Genepax can generate power by supplying water and air to the fuel and air electrodes. The basic power generation mechanism of the system is similar to that of a standard fuel cell. The main feature of the new system is that it uses a membrane electrode assembly (MEA), which contains a material that breaks down the water to hydrogen and oxygen.
Though the company did not reveal any more detail the company president said that they had "succeeded in adopting a well-known process to produce hydrogen from water to the MEA", similar to the mechanism that produces hydrogen by a reaction of metal hydride and water. However the company claims that compared with the existing method, the new process produces hydrogen from water for a longer time.
"similar to the mechanism that produces hydrogen by a reaction of metal hydride and water"
I've read about systems that erode metal hydride in water, the reaction producing hydrogen. What is not in the energy balance is the energy used to produce the MH.
There is much about this story that remains unsaid. Magic does not exist.
Water is the result of a reaction of hydrogen and oxygen that releases chemical energy. It is the result of a reaction, not the fuel for one. It takes more energy to break the bonds of the water molecule than you get from the combination to make the molecule in the first place.
Fueling the car with water is something called perpetual motion. It does not exist, no one has ever repealed the second law.