This project set out to find renewable energy solutions for small island communities, with a small island in the Faroe islands, Stóra Dímun as a case study. Many of the small isolated communities in the North Atlantic are dependent on electricity production by burning diesel oil. Over the last decade interest has been rising in using wind-hydrogen/battery systems. Some successful RD & D projects can be found in the North Atlantic region where wind power and hydrogen production have been conducted. One example is a project on Ramea Island (Newfoundland) with wind-hydrogen-diesel system set up by the initiative of Nalcor Energy in Canada providing electricity to 354 customers (total of 631 residents). This project, however, aimed to scale down and design a much smaller system, which is something large industries have not been interested in as they see this as a very small “specialized” market. The proposed community, was a Faroese island called Stóra Dímun. The island is located in the southern part of the Faroe Islands, with 14 residents. Diesel oil is frequently flown in by helicopter for their power production. The benefits of setting up such a system are manifold; cost reduction, currency savings, global warming etc.