A two-step thermochemical method, which is in the spotlight for its simplicity and ease of scale-up among various hydrogen production methods, was studied. In order to practically consider heat recuperation in high temperature, which has been pointed out as a problem of the method, the efficiency and economic feasibility of the two-step thermochemical method were evaluated considering changing effectiveness of PCHE depending on condition. Based on the in-house code, calculations were carried out for Ceria in two-step separated type reactor. Change in the thermal to hydrogen efficiency was calculated depending on temperature, oxygen partial pressure, effectiveness. The optimized volume and differential pressure were calculated in consideration of economic feasibility. Based on the results, portion of cost for production using Ceria was investigated and further research direction for future commercialization were suggested.