Climate initiatives as well as unpredictable changes of oil prices, requires fossil fuel industries urgently consider transition towards production of decarbonized fuels. Oil shale processing industry in Estonia also has been substantially effected by oil price drop. To improve the economic feasibility of the oil shale processing plant in Estonia, integration of a hydrogen production unit based on catalytic steam reforming technology with pressure swing adsorption purification is analysed in this paper. Methodology for evaluation of conventional oil shale processing industry transition to hydrogen production industry considering initial life cycle assessment elements is discussed in the paper.