In the mainframe of a research contract, a feasibility pre-design study of a hydrogen-fuelled Laboratory-Village has been carried out: the goals are the design and the simulation of a demonstration plant based on hydrogen as primary fuel. The hydrogen is produced by electrolysis, from electric power produced by a mix of hydroelectric and solar photovoltaic plants. The plant will be located in a small remote village in Valle d'Aosta (Italy). This country has large water availability from glaciers and mountains, so electricity production from fluent water hydroelectric plants is abundant and cheap. Therefore, the production of hydrogen during the night (instead of selling the electricity to the grid at very low prices) could become a good economic choice, and hydrogen could be a competitive local fuel in term of costs, if compared to oil or gas. The H-2 will be produced and stored, and used to feed a hydrogen vehicle and for thermal purposes (heating requirement of three buildings), allowing a real field test (Village-Laboratory). Due to the high level of pressure requested for H-2 storage on-board in the vehicle, the choice has been the experimental test of a prototype laboratory-scale high-pressure PEM electrolyzer: a test laboratory has been designed, to investigate the energy savings related to this technology. In the paper, the description of the dynamic simulation of the plant (developed with TRNSYS) together with a detailed design and an economic analysis (proving the technical and economical feasibility of the installation) has been carried out. Moreover, the design of the high-pressure PEM electrolyzer is described. (c) 2007 Elsevier B.V. All rights reserved.