but the biggest problem is psychological: The Hindenburg, still
So it's only worth it if you have other uses for the hydrogen or need longer-term storage, e.g. gas reservoirs.
Plus any infrastructure you build will have to be overprovisioned because by definition it'll be designed to absorb peaks and run idle the rest of the time, which makes it even less profitable.
Hydrogen is not a primary energy source, it is an energy storage and distribution tech, just like batteries.
That's why it's stuck in the demonstration phase, essentially.
It's not! the Scandinavians are investing in "green" hydrogen, you should look at the photos of the giant electrolysers in this PDF: http://hydrogenvalley.dk/wp-content/uploads/2017/09/FCB-CPH1...
The bigger issue for railroads is range; current battery operated trains have a range of about 40km, whereas this hydrogen train has a range of 1000km. You could have charging stations at every station, but then you run into issues if the distance between stations is more than 40km, or if the charging equipment at a station becomes broken.
Hydrogen is a terrible battery with very little chance to catch up to current battery tech.
Not a moot point, since depleting them has consequences.
The approach is quite competitive technologically and the efficiency is there but the problem is electric cost. Thankfully renewables are bringing that cost down so some areas with very cheap electric could support such manufacturing.
Nobody is claiming that all hydrogen is greener than diesel, the point is hydrogen has the potential to be vastly greener than diesel, and the best way to explore that in a capitalist society is to increase the demand for it.
A small disclaimer, I know nothing about hydrogen.
In the grand-scheme-of-things the universe will cool out either way.