The conventional H₂S abatement technology is facing challenges related to the low energy efficiency and loss of the product value due to steam generation. To overcome these challenges, an efficient process concept is required to upgrade H₂S into high-value H₂. Herein, we perform system evaluation on a novel two-step sulfur looping (SL) scheme that utilizes Ni₃S₂ supported over ZrO₂ as a sulfur carrier which can be regenerated in the presence of CO₂, and compared to the state-of-the-art Claus process. Both steps of SL – sulfidation and regeneration, are investigated through a combination of ASPEN-based analysis and thermogravimetric experiments to determine the optimum fixed-bed operating conditions. The advantages of the SL scheme over the Claus process are substantiated through process analysis which shows ~19% higher energy and ~8% higher exergy efficiency. Furthermore, for >99% H₂S conversion, the SL scheme achieves 2.4% higher sulfur yield compared to the Claus process. The superior performance can be attributed to the production of H₂ while eliminating the high temperature oxidation furnace and the air separation unit. The findings of this study provide system-level insights through combined thermodynamic and kinetic aspects and lay out the framework for the potential scale-up of an innovative H₂S to H₂ conversion technology.