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The Lava Fabricator will generate lava when supplied with power (MJ or EU). The fabricator will store it in an internal tank, or eject it to waterproof pipes or the like. It takes 20,000MJ to produce a single bucket of Lava.
Applying redstone power to the fabricator will cause it to stop generating lava. If you remove redstone power, the machine will not restart until its idle timer (rightmost blue bar in the fabricator's interface) reaches zero (i.e., several seconds).
The cost is 50k EU or 20k MJ per bucket. (When placed in a Combustion Engine, lava gives 20k MJ. The EU ratios are worse: The GregTech Thermal Generator yields 30kEU @ 24EU/t, while the IndustrialCraft2 Geothermal Generator yields 20kEU @ 20EU/t).
Note that there is a glitch in the GUI that lists the internal energy of the Lava Fabricator in MJ, when the numeric value corresponds to the EU equivalent.(Fixed in 1.7.10)
This machine is able to generate lava without any other materials, but Magma Crucible will make a bucket of lava at a cost of 12,000 MJ(120000 RF) but requires a netherrack. Generated lava can be pumped into Liquid Fueled Firebox to run Steam Boiler, the Steam produced can be used in a Turbine to make an infinite self-sufficient positive energy loop that produces massive amounts of energy without the need of anything.
In Unleashed 1.5.2 the recipe is: