Whoah... neet idea. The key to having the right pan is not, in fact, that it be magnetic. The pan must just be a conductor. A change in magnetic field causes currents in conductive materials, and the heat is caused by resistance. So, the ideal pan has a very specific resistivity. (Aluminum won't work because it's too conductive, and for the record, stainless steel is pretty much non-magnetic).

I would imagine the best pan is made of an electrically insulative material (ceramic?) for the handle and the rim, but the bottom is a well chosen metal to have the perfect resistivity.
Be careful about using metal utensiles with these pans.
It turns out this isn't a new idea - it's been around for a while but never gained popularity.

This is efficient because you're heating just the pan and not the stove itself. To this end, Microwaves are probably the most efficient cooking method as you're not even heating a pan but coupling the energy directly into the food by exciting the H20 molecules.

I'd want to know the gaussian field strength that the cook is exposed to: i.e. milli-gauss of EMF. COuld be a real issue. Or not?

To chime in with other assorted facts, induction stoves have been around for a while (just do a search and see), and there's even a brand called "Mr. Induction". They seem to be most commonly used for catering and industrial food service here and there; they're apparently useful for catering because they're easily portable and they cost less in electricity to run than portable butane ranges cost in butane to run. (More benefits: no open flame; flat, waterproof surface under the pot/pan). If there's a downside, I guess it would be that these things are more expensive and complicated and require more resources to manufacture, and they may not be as durable as other types of stoves.

I don't think the Gaussian field would matter unless you had a lot of iron in your diet. hahah! maybe.

This is random, and has little to do with the benefits ir excitement of the product, but it is an observation all the same: is it just me or does the control panel for the heater in the bottom right hand corner look like a little robot?

It looks kind of like Charlie Brown drawn by a pre-schooler...

Simon says:

"This is efficient because you're heating just the pan and not the stove itself. "

That's exactly right. By extension it also gives off less radiant heat which allows you have more control over your house's internal environment and hopefully use less a/c. At least that's the reasoning they gave during our tour of this prototype sustainable living house we toured this weekend.

I have 3 of the portable Mr. Induction burners from www.compactappliance.com, because of a weird kitchen layout with very limited counter space. They store perfectly in a drawer.

They heat up almost instantly and cool quickly and are easy to clean. I'm not sure what the electrical load is, though - I have blown a circuit with all three going on high and a vegetable steamer.

They recommend a thin stainless pot; I've noted that cheap stockpots are ok (unless the bottom is too warped to sit solidly on the burner), but my grandma's beloved Revereware didn't work at all. I broke down and bought a set advertised to work with induction burners, and have matching pots for the first time in my life.

While I don't want to shill for CompactAppliance, I bought my refrigerator, front-loading-washer/dryer, and the induction burners from them and they're always very nice to deal with. They also carry quite a few 12V appliances if you're thinking of going solar.

To John Laumer: I wouldn't think the magnetic field would be harmful at all. The field in an MRI scanner can get up a couple of Teslas and wouldn't hurt you.