A novel methodology for the economic evaluation of hydrogen production and storage for a mixed wind-nuclear power plant considering some new aspects such as residual heat and oxygen utilization is applied in this work. This analysis is completed in the context of a Hydrogen Economy and competitive electricity markets. The simulation of the operation of a combined nuclear-wind-hydrogen system is discussed first, where the selling and buying of electricity, the selling of excess hydrogen and oxygen, and the selling of heat are optimized to maximize profit to the energy producer. The simulation is performed in two phases: in a pre-dispatch phase, the system model is optimized to obtain optimal hydrogen charge levels for the given operational horizons. In the second phase, a real-time dispatch is carried out on an hourly basis to optimize the operation of the system as to maximize profits, following the hydrogen storage levels of the pre-dispatch phase. Based on the operation planning and dispatch results, an economic evaluation is performed to determine the feasibility of the proposed scheme for investment purposes; this evaluation is based on calculations of modified internal rates of return and net present values for a realistic scenario. The results of the present studies demonstrate the feasibility of a hydrogen storage and production system with oxygen and heat utilization for existent nuclear and wind power generation facilities. (C) 2008 International Association for Hydrogen Energy. Published by Elsevier Ltd. All rights reserved.