So they were heating the water, for a steam engine I guess. Seems to me that part of the problem running an engine on acetylene (or hydrogen) as a fuel, (unpressurized) would be getting the acetylene under high enough pressure. This takes a compressor, which takes power, which needs "fuel". One could just run the engine from the "fuel" instead.
Hydrogen fuel cell is another matter, provided you have a cheap source of hydrogen.
The fuel cells being researched where I work use formic acid as the fuel of choice. The stuff that ants make. Ethanol has problems with generation of CO at low temperatures, which tends to snuff out the cell. Hence all the research on catalysts. It is quite remarkable, to me, how much power they can get from small cells.