In 50 Fathoms Kraken and a few other races have a hindrance of Dehydration, that means they must immerse themselfs in water for at at least hour, in every 24 hours, can the dehdyration be prevented using the Enviromental Protection spell?
The wording of the Environmental Protection power states that it:
As Kraken experience environments out of water as harmful, I would rule that the power protects them in the same way as it would a human who was underwater.
The one caveat to this is that the power would need to be constantly active during the day. If you wanted to get fiddly, you could rule that if it were active half the day, the Kraken would only need half an hour in water and so on, but this could very quickly get difficult to track.