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It's right to think about potential knock on effects from technology but nothing's jumping out at me about that generating idea

You're taking water vapour, which has turned from liquid to gas from solar energy, and probably condensing it back to liquid, releasing that little bit of energy in the process. Solar energy will eventually evaporate it again, but that's a potential net benefit in the age of climate change, at least locally to the generator. The microbial contamination is definitely going to be an issue but that's more operational than hazardous. As they mention, manufacturing and scaling will be the real problem.

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