What's wrong with Steorn's Orbo?

Aside from violating the laws of thermodynamics I mean.

According to the small amount of information that’s trickled out to the public, their free-energy machine makes use of magnetic lag. Supposedly if you move two magnets together quickly it takes time for the magnetic field to “catch up”. Move the magnets together quickly, let the field reach full strength, then let the field push them apart slowly. That way you get more work out of the expansion than you put into the compression.

My question for the physics-minded among us is: What specific mistakes are they making here? Are they misunderstanding magnetic lag? Is there even such a thing as magnetic lag? If magnetic lag does exist, why can’t it be used as a free energy source using the mechanism above?

(Note – please no general-purpose conservation-of-energy responses. I understand the argument against free-energy machines in general. I’m curious about the specific flaws in the magnetic lag approach that Steorn is using.)

I’ve never heard of magnetic lag, but I don’t understand your description. Why would it take less energy to push the magnets together than you get from their repulsion? I don’t see how a time lag changes the situation, if one exists.

This is not true. That is the mistake.

Current GD thread.