Although I am a bit rusty on the subject, I believe this will not work
with induction motors. An induction generator requires a source of (what
I think is leading) reactive power that it normally gets from the grid
it is connected to.
Rotary converters based on standard induction motors should include
capacitors between the single phase line connected motor terminals and
the derived phase motor terminals, also sometimes a power factor
correction cap across the single phase line. One design I have seen
posted on the rec.crafts.metalworking newsgroup used a 5 HP motor with 60
uF and 50 uF capacitors to the derived phase, with an additional ~300 uF
motor start capacitor temporarily connected across the 60 uF run cap for
starting. and a 50 uF power factor cap across the line. Current and
voltage balance will never be perfect with a rotary converter based on an
induction motor with capacitors, but it is good enough to power 3-phase
motors in a home shop where the motors are not generally run continuously
at full power.
There are a number of variations on the rotary converter in use including
use of fixed capacitors large enough to start the load without a starting
capacitor, and the rope-start converter where a rope wrapped around the
motor shaft is used instead of the starting capacitor. The rope-start
version will even run and power a smaller load with poorly balanced power
without any capacitors at all; the single phase line provides enough
reactive power to keep a lightly loaded 3 phase induction motor running
once it has been started.
Better rotary converters use a special multi-tapped single phase
transformer with a non-standard induction motor winding to produce very
well balanced 3-phase power using no capacitors. This design was once
widely used in electric locomotives, and is described in detail in
"Principles of Alternating-Current Machinery" by Lawrence and Richard,
4th ed 1953 (the classic book on the subject). I don't know if these are
still made but I have seen them show up at auctions occasionally.
The static converter is a box of capacitors only, using your motor(s) for
the other half of the converter, suitable for powering motor loads only
and typically even more imbalanced that a homemade rotary converter - but
also cheaper to build yourself and often well suited for the home shop.
The VFD is also designed for driving motor loads only, and some care must
be exercised when using them with standard (not inverter rated) motors,
however if mounted very close to a 240 volt motor (short wire from
inverter to motor) or if the optional output filter is purchased with the
VFD (or better yet use the output filter and a very short cable for
minimum chance of EMI problems, possibly also use the optional VFD input
filter if sharing a power feed with sensitive loads), and the motor is
never run at reduced speeds except during ramp up to 60 Hz on start and
ramp down on stop, and good wiring practices are followed to keep VFD
noise out of the control system, then the VFD will provide the motor with
well balanced 3 phase power and operation as good as with a utility 3-
phase feed can be expected.