I don't think so, because (in most cases) the water used to generate hydroelectric power already exists uphill from the turbine. Taking advantage of this positional potential doesn't require the expenditure of energy.
But is does take energy to create the hydrogen, and to run the alternator off of the hydrogen, etc. If hydrogen in an energy-useful form were plentiful, this wouldn't be an efficiency issue, although the safety aspects would remain.
Just my $.02
Im not arguing the fact that this device works. Im arguing the fact that if you enhance the horsepower of the engine beyond what is lost to turn the alternator you require less fuel to do the work.