Recently, in Japan, recycling technologies have been developed using waste biomass material. Waste biomass is traded in the waste materials market between users and a third-party, who receives a fee for processing them. This study is an environmental and economic analysis of a biomass energy system, which can produce hydrogen fuel for fuel cells (purity of 99.99%) as an example of an environmental business model. The experimental apparatus was made based on the moving-bed gasifier by the German company, DM2 Inc., and the hydrogen gas yield was measured. Finally, the economic viability of the future hydrogen business was estimated. The experimental results obtained gave the gas concentration of 57.5% in a Steam/Carbon ratio of 1.40 at 900 degrees C. Assuming the plant scale of 10 t/d, the production amount of hydrogen gas would be 21.3 kg/h. Based on the law concerning waste processing in Japan, a sizeable amount of waste biomass could be expected. Therefore, if the processing fee which is paid to the group (contractor) ranges between 5.0 and 10.0 $/t, and if the whole investment cost is 6 million dollars and the depreciation period is 15 years, the bio-hydrogen production cost using the experimental data would be 5.75-7.86 $/kg-H-2 without receiving related subsidies. In a one-third grant proportion, the cost would become 4.60-6.72 $/kg-H-2. (c) 2006 Elsevier Ltd. All rights reserved.