Biomass direct-fired power plant integrated with carbon capture system can achieve negative CO2 emission during the power generation, which provides an important technology pathway for the transformation of energy system towards carbon neutrality. Understanding the economic competitiveness and CO2 reduction potential of the plant, and identifying the optimal operating mode are the key to fully exert the advantages of the technology. For this reason, this paper develops life cycle economic and CO2 emission assessment models for the biomass direct-fired circulating fluidized bed boiler power plant (BCFBP) integrated with solvent-based post-combustion carbon capture (PCC) system. The levelized cost and CO2 emission of energy indexes are then applied to evaluate the performance of the BCFBP-PCC system. Based on the life cycle assessment, a novel economy and CO2 reduction dual-objective operating optimization approach is proposed for the BCFBP-PCC to find the optimal hourly power generation and CO2 capture level of the plant under given market conditions. The static investment payback period is employed as a constraint in the optimization to narrow down the range of the solution set and provide clearer guidance for system operation. This paper provides the first work pioneered the economic and negative carbon operation optimization of the BCFBP-PCC system.