The development of low-carbon fuels from renewable resources is a key measure to reduce carbon dioxide emissions and mitigate climate change. Biomass gasification with subsequent gas processing and purification is a promising route to produce low-carbon hydrogen. In the past decade, simulation-based modelling using Aspen Plus software has supported the investigation of future potential industrial applications of this pathway. This article aims to provide a review of the modelling and economic assessment of woody biomass gasification-based hydrogen production, with focus on the evaluation of the model accuracy in predicting producer gas composition in comparison with experimental data depending on the approach implemented. The assessment of comprehensive models, which integrate biomass gasification with gas processing and purification, highlights how downstream gas processing could improve the quality of the syngas and, thus, the hydrogen yield. The information in this article provides an overview of the current practices, challenges, and opportunities for future research, particularly for the development of a comprehensive pathway for hydrogen production based on biomass gasification. Moreover, this review includes a techno-economic assessment of biomass to hydrogen processes, which will be useful for implementation at industrial-scale.