Hydrogen is believed to be the future energy carrier for the world.  However, its current commercial production essentially uses methane.  As Pakistan is moving deeper into the clutches of energy and natural gas crisis, it is essential for us to look for a way to produce hydrogen from a renewable source.  Bio-ethanol is an excellent candidate to replace in the perspective of a hydrogen- based economy.  The process developed includes using ethanol for the steam reforming over Ni/Al₂O₃ followed by shift conversion, gas absorption, stripping and membrane separation.  This project is directed at determining the production of hydrogen per unit ethanol and ensuring maximum energy recovery with the help of material and energy balances, designing major equipment used in the process and conducting a detailed costing to determine the economic feasibility of using ethanol as an alternative source of hydrogen.  Furthermore, the hydrogen and carbon dioxide produced is compared to their raw material ethanol as products in terms of cost of production and expected profit.  On the basis of this assessment, conclusions are drawn regarding the viability of installing a hydrogen production plant after the distilleries currently present in various sugar industries across Pakistan.