The global energy crisis and climate change mitigation efforts have accelerated the search for sustainable energy technologies. Hydrogen is a key energy carrier in this transition. While steam methane reforming (SMR) dominates conventional hydrogen production, it generates significant GHG emissions. Water electrolysis is carbon-free but economically limited due to high electricity costs. Ethanol steam reforming (SRE), especially from lignocellulosic bioethanol, offers a carbon-neutral and infrastructure-compatible alternative. This work evaluates a hydrogen production system via SRE, focusing on efficiency, economic feasibility, and environmental impact. The process includes: (i) ethanol production from biomass through enzymatic hydrolysis and fermentation, (ii) catalytic steam reforming and water-gas shift (WGS) reactions, and (iii) purification via polymeric membranes. Aspen Plus® was used for modeling: NRTL for distillation, Peng-Robinson for reactors. LHHW kinetics with Ni/MgO/Al₂O₃ and CuO/ZnO/Al₂O₃ catalysts were applied. A sensitivity analysis optimized ethanol concentration, temperature, and configuration to enhance H₂ yield and minimize costs and emissions. Results show SRE achieves 70–80% efficiency, outperforming electrolysis (60–75%) in conversion and cost. Environmental analysis confirms a carbon-neutral cycle using biomass-derived ethanol. This study addresses a research gap by assessing bioethanol-based hydrogen in Guanajuato, Mexico, promoting circular economy and supporting energy transition goals.