Just like the flaws in any hydrogen based power "generation" process, neither the hydrogen or the other materials required to make the thing work exists in nature so energy has to be expended to make it. That means the whole setup is nothing more than another way to get energy from one place to another. Or in other words, it's a fancy battery.
Not that this is necessarily a bad thing since a really good battery would solve a lot of problems. For example the amount of power lost over high power transmission lines is pretty high and even older low-efficiency solar panels (which are also really just fancy batteries) are quite reasonable in areas where power is hard to get, expensive, or there are local surges that make it worthwhile to collect your own energy.
However...
In this case, the power required to turn naturally occurring aluminum oxide into the form necessary for production of the device is rather high. A quote from another website...
The problem with using aluminum to generate hydrogen is that less than half of the energy used to reduce the aluminum from its oxide can be extracted in a fuel cell. The standard electrode potential for aluminum is -1.68 V, for oxygen is +1.23V (both relative to hydrogen). Thus a hydrogen fuel cell can use 1.23/(1.23+1.68) or 42% of the energy originally used to create the aluminum. Actual results will be lower, of course.
I think that pretty much says it all. The device can't be more efficient than any other 42% efficient energy conversion technology. Yes, it's worth researching because like solar cells there may be ways to make the basic concept work better or with other materials that are more available, but it's not a silver bullet.
As for the amount of atmospheric H2O, if you wanted to reduce man-caused H2O emissions you'd have to kill just about every living creature on the planet because our basic metabolic processes "create" H2O as a primary byproduct. It's how our bodies work, we eat food, drink water, and our bodies convert most of the energy extracted from the food into heat and water.