What runs through my mind, is how do you produce plasma, and would plasma split/explode a water droplet in a confined metal cylinder?
I do not see it happening. If it did, I question if an internal combustion engine would be the most efficient way to go.
Water is burned (oxidized) hydrogen. It takes at least as much energy to unburn as you get back from burning it.
I understand that you want to make hydrogen using heat and then burn it. A paper Production of Head During Plasma Electrolysis in Liquid was published in 2000 in Japan, it claims to have achieved over unity. It may not seem to be what you are looking at but it may be where you will end up. (I am not endorsing cold fusion).
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