See here
https://mods.factorio.com/mod/bobpower/discussion/621a85f5c5f7c188ddea3b35
Since it is not possible to burn hydrogen directly it is a little bit more complicated
But there is a way making hydrazine through saline water electrolyzis. It produces 20% more energy than it is using – even without efficiency-modules. And it produces additional hydrogen, oxygen and chlorine which are valuable products.

Here is a blueprint with efficeincy-modules. it can easiely support a bunch of radars:
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

There is an even more efficient way by producing the salt needed for sodium hypochlorid via molten salt electrolysis. And than using the majority of the hydrogen via water electrolysis. Optimizing this (12% saline water electrolyzis 88% molten salt electrolysis) would result in about 30% more energy (without efficiency modules) but it is much more complicated and requires much higher tech.

What do you think is the problem with this? Does it make power production too easy?

There is no coal to mine in Sea Block so it's normal that power comes from water; generally via green algae charcoal or farming.

For green algee, solar panels or farming the energy does not come from water. It comes from the sun.

Does it make power production too easy?

If I go all the way MK2 (for chemical plants, electrolyzers...) the setup without efficiency modules it is similar resource effective as solar panels. With it is much more space efficient. But it is not so much a game changer since it es eventually more complicated to balance.
This gets different, when you are in endgame and you have to setup a full chain to rocket fuel anyways: You make it just a little bit bigger.
With maximum plants and MK3 efficiency and speed modules you get 10 rocket fuel (worth 1GJ) from 36 cellulose fiber (worth 36MJ) and water+75MJ electricity. This is ten times of the energy you invested. And it is almost no additional work, to make your fuel production a little bit bigger.
This is just one example. 1GJ of solid fuel can be produced from water, 200MJ of cellulose fiber and 45MJ worth electricity. By producing loads of slack as byproduct.

While it isn't that obvious any more since you removed the fuel value of hydrogen and removed a few easy to see fully closed loops. But you inherited the logic of bob, that higher tear assemblers produce more energy rich products than the educts+electric energy they need.
You also inherited that the energy of solis produced from liquids/gases have much more energy than the liquids while you don't loose energy producing liquids from solids.

This makes it much more efficient to burn things produced from hydrogen than producing energy by growing something or setting up solar panels, wind turbines or nuclear plants. While it is complicated to set up pure energy producing loops, burning byproducts made out of gases and reassembling them elsewhere reduces your need for algae plants and solar panels/accumulators greatly. That isn't what you expect: Wasting things reduces reduces your need of raw materials. And I think, this wasn't intended.

What are you suggesting should be changed?

I'm still not seeing any gameplay issues sorry. Many things wont make sense in real world physics and that's okay. It's a game so gameplay is the most important consideration.

Solar and wind power are deliberately not very good in Sea Block. They aren't interesting or fun to build so I don't want to encourage building them.

Helmod power comparison

Making 1GW power from different sources. Using top tier machines and recipes. Minimizing inputs and outputs as much as possible.

Rocket Fuel
- Machines: 1317
- Power consumption: 444 MW
- Ingredients: Catalyst ores (11, 2, 2, 1 of each tier, respectively)

Green Algae
- Machines: 523
- Power consumption: 156 MW
- Ingredients: None

Farming for fuel oil
- Machines: 244
- Power consumption: 40 MW
- Ingredients: None

Deuterium fuel cell
- Machines: 20
- Power consumption: 1MW
- Ingredients: None

None of my calculations use modules. I don't balance around modules. They are expensive and difficult to make to compensate for this.

It seems that you are using an extremly inefficent way for rocket fuel. With plain seablock it looks much more like this:

On the other hand I can not reproduce the way you made charcoal pellets so cheap without machines mod and Deuterium fuel cell without bobrevamp. But than it is possible again to use the much cheaper way I described in the bob-bug report:
https://www.youtube.com/watch?v=N8ozryzl--M

Can you post a screenshot of your Rocket Fuel production please?

I'm using Sea Block Pack mod and all it's prerequisites. This is the recommended way of playing Sea Block. The full mod pack includes most of Bob's mods, including Assembling machines and Revamp.