This paper presents a novel green combined heat and power generation system for industrial applications. It composes of a hydrogen-fueled combined cycle power plant and a battery energy storage. Firstly, the hydrogen-air rich mixture enters the combustion chamber of the gas turbine cycle for generating electricity, while recovering the heating energy from the exhausted flue gases for driving a steam turbine cycle. The heating energy extracted from the condenser heat exchanger is also used to supply the heating demand of the end-user. Moreover, a comprehensive thermodynamic model and analysis of H2 combustion process is provided to estimate the adiabatic flame temperature based on enthalpies of reactants and products. The optimum operating point of the cogeneration system is found by solving a mixed-integer nonlinear problem using MATLAB and GAMS over a 24-h study horizon aiming to minimize its daily operation cost considering all technical constraints of system components and load-generation balance criterion. It is found that the energy efficiency of the hydrogen-fueled combined cycle changes from 46 to 58 % while generating 11.331–12.982 MW electricity and 4.436–4.984 MW heat. Two cases are studied without and with participation of battery in energy procurement strategy. It is demonstrated that the objective function of the optimization problem improves from 18 $ cost in case 1 to 29 $ revenue in case 2.