This research evaluates the economic and environmental feasibility of extracting dietary fibre (DF) from a by-product such as soybean hulls. Techno-economic (TEA) and life cycle assessment (LCA) were carried out to identify the critical factors that may limit the implementation of a potential biorefinery plant. The modelling of the process was carried out on the basis of mass and energy balances, as well as the characteristics of the required equipment. TEA indicators such as minimum selling price (MSP), fixed capital investment, manufacturing costs were evaluated. A cradle-to-gate LCA approach and a functional unit (FU) of 1 kg of product (85% DF content) were considered. Impact categories such as global warming (GW), eutrophication, eco-toxicity, among others, were analysed. The results indicate that the production capacity achieves the plateau at about 56 kt y−1, with an MSP value of 2.6 $·kg−1. Furthermore, the GW profile was 8.76 kg CO2eq per FU, and the main hotspot is the alkaline digestion stage due to the use of potassium hydroxide (KOH). Nevertheless, the management of the hulls from multi-product food plants and switching KOH production to renewable sources may reduce the profile in almost all categories analysed.