This research work presents an innovative approach for continuous decentralized production of renewable hydrogen from woody biomass. Alkaline water electrolysis (AWE) is used to produce high-purity hydrogen, while the oxygen by-product is mixed with ambient air and used to fire a biomass-fueled downdraft gasifier in order to produce an upgraded producer gas with a lower heating value (LHV) between 7–8 MJ/Nm3. This fuel gas is then subjected to a conditioning stage and eventually fed to a combined cycle consisting of a recuperative gas turbine as topping unit and a regenerative subcritical organic Rankine cycle as bottoming unit, which together allow for a combined electric power generation efficiency close to 40%. Most of the net AC power from the integrated gasification combined cycle (IGCC) is rectified to DC power and ultimately used to power an alkaline electrolyzer, with a minor share allocated to all the required utilities and ancillary equipment, including hydrogen compression to 200 bar. The results from simulation of the hybrid IGCC-AWE plant under steady-state operating conditions in Aspen Plus V.11 indicate an optimal efficiency of 17.6% based on the LHV of hydrogen. Thus, if sized for a biomass consumption of 1 t/h, the proposed plant is capable of providing around 26 kg/h of compressed hydrogen at 200 bar.