Generating hydrogen from renewable energy sources is widely recognized as an effective strategy for addressing critical challenges in the energy sector while contributing to the reduction of greenhouse gas emissions. This study aims to assess the wind energy potential for electricity and hydrogen production in five locations on Sumba Island using 10 years (2011–2020) of data from the NASA's POWER Project. A wind variability assessment was performed on five wind turbines ranging from 500 kW to 1.5 MW and using electrolysis technology. The results indicated a hydrogen production potential of 25–57 tons per year. Economic analysis of hydrogen production for Haharu reveals an attractive internal rate of return (IRR) of 43% with a payback period (PBP) of 2.25 years and a net present value (NPV) of 1.3 MM USD, the levelized cost of electricity (LCOE) of 0.0241 USD/kWh, and the levelized cost of Hydrogen (LCOH) of 1.01 USD/kg. Sensitivity analysis underscores the critical influence of investment and revenue on project profitability, highlighting their substantial impact on determining a project's success or failure. These findings emphasize the potential of Sumba Island as a hub for sustainable energy production to meet the growing demand for clean and renewable energy sources.