As part of Pilot Project of KIP of CAS, a feasibility study of hydrogen production system using biomass residues is conducted. This study is based on a process of oxygen-rich air gasification of biomass in a downdraft gasifier plus CO-shift. The capacity of this system is 6.4 t biomass/d. Applying this system, it is expected that an annual production of 480 billion N m(3) H-2 will be generated for domestic supply in China. The capital cost of the plant used in this study is 1328$/(N m(3)/h) H-2 out, and product supply cost is 0.15$/N m(3) H-2. The cost sensitivity analysis on this system tells that electricity and catalyst cost are the two most important factors to influence hydrogen production cost. (C) 2007 Elsevier Ltd. All rights reserved.