..I have at least two different designs for perpetual electrolysis engines that run entirely off clone and iron. This isn't a magic trick, though I can see where you'd be frustrated over it. It's not by any means slow or inefficient, either.

This engine turns water into fire. Fast enough to be noticable, and without ever losing the iron spark.

This isn't an enable/disable thing, the stuff stays electrified constantly, but if what you want is an off switch, you'll need to add that log into the gate that allows the water into the electrolysis chamber.

Powder Toy mechanics and 'destructible' don't mesh well together. Things that are designed for being blown up usually aren't good at physics-rending.

It's not what I'm good at. :P