OT: Daydream in blue

Recently net’s crackpots were stirred by news about a little company called Steorn. Apparently Steorn invented a device that produces free energy.
That’s right, free energy – and I quote:

1. The technology has a coefficient of performance greater than 100%.
2. The operation of the technology (i.e. the creation of energy) is not derived from the degradation of its component parts.
3. There is no identifiable environmental source of the energy (as might be witnessed by a cooling of ambient air temperature).

While 1. is meaningless and 2. is debatable - 3. is just too vague to approach. Is there an outside source of energy or isn’t there? Or to put it more simply – where’s the little hamster at?
I guess insolitology needs an update.