Not only are they trying to chuck Thermodynamics out the window but they are ignoring, or at least oversimplifying, one of the fundamental properties of the universe. Remember that little equation e=mc^2? Matter and energy are interchangable, to create one you would have to create the other. So what they are doing in essence is saying that they have figured out how to literally create new matter. Of course, if they had created a machine that converts matter into energy with 100% efficiency they could be forgiven for saying that something that heats your home all winter on a handful of dirt is making energy from 'nothing'. But like HM said,

. It's a hoax until proven otherwise