Earlier quoted context omitted.
The efficiency of a complete cycle of storing then retrieving energy into hydrogen is quite low and there are thermodynamic reasons (due to the phase changes between liquid and gas) that limit the achievable efficiency. Hydrogen might be a possible choice when high energy per mass or power per mass is desired, but it is a very bad choice for the purpose of this new iron-air battery, i.e. stationary storage with very…
All metal-air batteries have similar thermodynamic properties. If you can make a iron-air battery with good efficiency, than you can make a hydrogen-air battery with good efficiency too. Since water is significantly more available than just about any other material, hydrogen-air cells should be the ideal battery for anything that isn't volume limited. Which is frankly a lot of cases. Unless there's some specific need…
You are also right about synthetic hydrocarbons. The extra hydrocarbon synthesis step lowers the total efficiency, compared with using hydrogen.
Nevertheless, the lower efficiency is more than compensated by the simpler methods used for storage and handling, which require much less expensive materials and a much lower volume and total mass.
The benefits of using hydrocarbons for long-term energy storage have been amply demonstrated by the living beings that have been using this method for billions of years, many of which can easily achieve an autonomy of months without eating, while doing activities that would make a present-time robot using batteries inoperational after a few hours at most.