Hydrogen can be used in much more many ways, including:
1. Fuel for vehicles (probably late game as it would require also fuel cell technology)
2. Replacing Blast Furnace + Basic Oxygen Furnace with Direct Reduced Iron (where hydrogen is the oxidant and not coal) + Electric Arc Furnace
3. CO2 capture technology could be implemented (either capturing CO2 from exhaust or Direct Air Capture using electricity). Then CO2 + H2 => synthetic diesel
4. If we have solar PV as electricity source (and maybe also wind in the future) these should be made variable (i.e. electric output should be random) - then electrolysis could have a toggle option for 'load following' mode of operation, where hydrogen would only be produced if there is excess renewable generation
Additional uses for hydrogen
Fair enough on 3
But 4 is not really. I know you can make hydrogen from electrolysis. I know you can make electricity from PV. What is missing is the possibility of being able to operate the electrolysis in a load following mode – so that it doesn’t produce hydrogen all the time – but only if there is excess electricity generated from PV (and wind if it gets added to the game). Currently this would be possible via the prioritization system - but only if you would have all your electricity generation based 100% on renewables.
Its a niche need I give you that ;)
you may be able to do 4 with the priority settings for the factories.
if there isn't enough power the factory just shuts down.
also there is a priority for the generators (diesel, PV, turbine) PV is standard 1, diesel is standard 11