The present study investigates the distributed generation of hydrogen (50 Nm 3 /h) by steam reforming of biodiesel. The system comprises a steam reformer, a water gas shift stage, a pressure swing adsorption unit and a dual fuel burner. Sensitivity analysis with Aspen Plus shows a positive effect on overall system efficiency for high pressure and a low steam-tocarbon ratio. A theoretical maximum efficiency (based on lower heating value) of 78.2 % can be obtained requiring a complex and costly heat exchanger network. Consequently, a system simplification is proposed resulting in a novel fuel processor concept for steam reforming of biodiesel based on a fully heat integrated system. A thermal system efficiency of 75.6 % is obtained at S/C=2.53, p=13 bara and T Ref =825 °C. The techno-economic evaluation reveals hydrogen production costs ranging from 7.25 €/kg to 10.58 €/kg.