Abstract Hydrogen fuel cells are received increasingly wide attention in order to develop green ships and reduce greenhouse gas emissions in the field of waterway transportation. Metal hydrides (MHs) can be used to store hydrogen for green ships due to their high volumetric storage capacity and safety. Various measures should be considered in the design and manufacture process of the MH reactor to strengthen its performance of heat and mass transfer and obtain an acceptable hydrogen storage capacity. In this work, LaNi5 hydride is used as the hydrogen storage material and packed in the reactor. A basic axisymmetric numerical model for the hydrogen storage system without a heat exchanger has been developed and proved to be effective through the comparison between its simulation results and the published data during dehydriding. A hybrid heat exchanger, which is consisted of a phase change material (PCM) jacket and a coiled-tube, has been applied into the hydrogen storage system to relieve the thermal effect of MH in the dehydriding process on system performance. Effects of the heat transfer coefficient between the circulating heating water in the coil-tube and the MH bed, the temperature of circulating heating water and the pressure at the outlet on the dehydriding performance have been investigated. Based on parametric study, the relationships among the average dehydriding rate, the heat transfer coefficient, the heating water temperature and the outlet pressure have been found and fitted as simple equations. These fitted equations can be considered as a reference, which provides an important method to effectively control the dehydriding rate in order to satisfy the fuel requirement of the power unit and ensure the safe navigation of green ships in the future.