This work presents a strategy to produce gamma-valerolactone (GVL) from ethyl levulinate (EL) by heterogeneous catalytic reaction and vapor-liquid equilibrium separation. This approach has the advantages of achieving a high yield of GVL and of using easily recycled catalyst and solvent. Based on experimental results, this work presents a large-scale process simulation study including process design, energy analysis, and economic analysis to show the economic feasibility for the proposed strategy. This strategy is very sensitive to EL price and highly depended on an off-site supply of heating energy. Results of our study suggest that the strategy is an economically-competitive alternative to current GVL production approaches. (C) 2018 Elsevier Ltd. All rights reserved.