oxygen's explosive!!! don't anybody light a match please!!!
When something burns it combines with oxygen. Water is the result of hydrogen "burning"... it already combined with oxygen. You really could say that it already burnt and therefore will not burn again.
A MIXTURE of hydrogen and oxygen IS explosive
The explosion is the release of energy as the atoms combine to form water.
The water is NOT explosive because the energy has already gone. If you put energy back in (in the form of electricity) you can turn the water back into hydrogen and oxygen which you can explode again.
A water powered engine makes as much sense as a carbon dioxide powered engine. Both are the final products of combustion and there is no practical way of extracting further chemical energy from them.
Any process that changes the properties so that energy can be extracted will require more energy being put in first.