Burning hydrogen releases water vapour, while burning fossil fuels release carbon dioxide and water vapour. So, you could call it indeed more environmental friendly if you consider carbon dioxide harmful.

However, hydrogen doesn't occur on Earth in a pure state (at least not in mineable quantities). There are no hydrogen wells.

Creating the hydrogen (for example, by electrolysis of water) is expensive and generally a net loss of energy. Maybe storing energy in hydrogen is feasible if it's generated with excess nuclear or solar electricity.