Abstract Large scale biomass utilisation in energy-related applications is of paramount importance to reduce the fossil CO 2 emissions. At European level, about a third of energy consumption is expected to be covered by renewables in the next 15 years. In addition, the CO 2 emissions need to be reduced by 40% compared to the 1990 level. Within this context, innovative energy-efficient low carbon technologies have to be developed. Chemical looping is a promising conversion option to deliver reduced energy and cost penalties for CO 2 capture. This paper assesses biomass direct chemical looping (BDCL) concept for hydrogen and power co-production. The concept is illustrated using an ilmenite-based system to produce 400–500 MW net power with flexible hydrogen output (up to 200 MW th ). The performances are assessed through computational methods, with the mass and energy balances being used for in-depth techno-economic analysis. The biomass direct chemical looping delivers both high energy efficiencies (~ 42% net efficiency) with almost total carbon capture rate (> 99%) compared to other CO 2 capture options (e.g. gas–liquid absorption). The economic parameters show also a reduced CO 2 capture cost penalty for biomass direct chemical looping technology compared to gas–liquid absorption (e.g. 7% reduction of specific capital investment).