Effective energy storage and management is needed to manage intermittent renewable energy systems. Several jurisdictions around the world are planning to reduce or close their coal power plants to allow for renewable energy expansion, such as Ontario, Canada. Hydrogen storage, which is a promising energy storage option, is capable of meeting energy requirements that will arise from the shutdown of coal plants. In this paper, both economic and environmental feasibility of a hydrogen system linked with wind and hydroelectric plants in Ontario will be investigated. The Princefarm wind power plant and Beck1 hydro plant with production capacities of 189 MW and 490 MW, respectively, are analyzed in a case study for comparison purposes. The environmental analysis demonstrates the advantageous role of hydrogen storage and energy conversion. The overall system life-cycle yields 31.02 g CO2 eq per 1 kW h power output of the system when hydrogen energy storage is adopted. The payback periods of the systems linked with the Princefarm and Beck1 are also analyzed and found to be about 17 years. Copyright (C) 2012, Hydrogen Energy Publications, LLC. Published by Elsevier Ltd. All rights reserved.