The deployment of wind energy is constrained by wind uncontrollability, which poses operational problems on the electricity supply system at high penetration levels, lessening the value of wind-generated electricity to a significant extent. This paper studies the viability of hydrogen production via electrolysis using wind power that cannot be easily accommodated on the system. The potential benefits of hydrogen and its role in enabling a large penetration of wind energy are assessed, within the context of the enormous wind energy resource in Ireland. The exploitation of this wind resource may in the future give rise to significant amounts of surplus wind electricity, which could be used to produce hydrogen, the zero-emissions fuel that many experts believe will eventually replace fossil fuels in the transport sector. In this paper the operation of a wind powered hydrogen production system is simulated and optimised. The results reveal that, even allowing for significant cost-reductions in electrolyser and associated balance-of-plant equipment, low average surplus wind electricity cost and a high hydrogen market price are also necessary to achieve the economic viability of the technology. These conditions would facilitate the installation of electrolysis units of sufficient capacity to allow an appreciable increase in installed wind power in Ireland. The simulation model was also used to determine the CO(2) abatement potential associated with the wind energy/hydrogen production. (C) 2003 Elsevier Ltd. All rights reserved.