This study evaluates the performance of a new standalone integrated system for independent hydrogen production combining waste heat recovery (WHR) via thermoelectric generators, humidification-dehumidification (HDH), and a proton exchange membrane (PEM) electrolyzer. The system's behavior is analyzed at varying steam inlet temperatures and qualities to identify the best configuration for power generation. A complete mathematical model of the whole system unit is constructed, programmed inside Matlab, solved, and validated. Four configurations are studied for the thermoelectric generator unit distributions [100 × 100], [50 × 200], [25 × 400], and [12 × 833]. Configuration 4 (12 ×833 TEG arrangement) outperforms others, generating 36.88 kW at 160 °C and 0.97 steam inlet quality, a 130 % increase compared to 100 °C. This configuration extracts 337 kW from steam, enabling a hydrogen production rate of 15.5 kg/day with PEM efficiency peaking at 73.65 % (declining to 68.94 % at 160°C due to overpotentials). The HDH unit is operating at a GOR of 1.892. The system efficiency increased from 4.45 % at 100°C to 4.95 % at 160 °C, driven by enhanced TEG power generation. Economic analysis reveals a levelized hydrogen cost (LCOH) of 2.22–2.22–2.96/kg, competitive with blue hydrogen markets. Net Present Value (NPV) analysis shows profitability at 3–5 $/kg hydrogen, with breakeven at 10–20 years for 3 $/kg and 4–5 years for 5 $/kg. Excess water utilization in the PEM electrolyzer reaches near-zero at 160°C, contrasting with 55 % excess at 100°C. Trade-offs between steam quality and hydrogen yield are quantified: increasing quality from 0.05 to 0.97 at 100°C raises hydrogen production by 0.45 % (6.97–7.01 kg/day), while higher temperatures prioritize power over electrolyzer efficiency.