From this case study of the Icelandic case, a real-life scale sociotechnical experiment on the hydrogen economy can be observed. The experiment is more generally called a test-bed, which is made possible by Iceland's small society and unique natural environment. Iceland has developed hydrogen energy policies, and corresponding activities have provided researchers with experimental experiences. This paper sheds light on Iceland's challenge from a sociotechnical system viewpoint, which emphasizes the importance of sociotechnical experiments in the early stage, i.e. niche level. Preconditions and conditions of the experiment are analyzed, together with the presentations of observed phenomena, such as articulation of visions and development of networks. A critical review on the Icelandic experiment should provide us with useful lessons and policy implications for improving hydrogen energy activities not only in R&D but also especially in demonstration and deployment. Copyright (C) 2011, Hydrogen Energy Publications, LLC. Published by Elsevier Ltd. All rights reserved.