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It converts mechanical energy (horsepower like what our permanent magnet motor produces) to electricity at a 100% conversion. One unit of mechanical energy makes one unit of electrical energy. If our motor uses one unit of electricity to make five units of mechanical energy and that is converted to five units of electricity by this generator, then it is easy to see why I believe the combination would produce five units of electricity from one unit of electricity making the other four free. Supposedly our permanent magnets in our motor cannot be an energy source, because, "magnets do not do work." We also proved conclusively that magnets can do work on this second tour, and have never lost a debate on the subject.