Air pollutants such as carbon dioxide and nitrogen oxides emitted by the combustion of fossil fuels have become the subject of increasing concern. Hydrogen has accordingly emerged as a promising low-emission alternative energy source. Among the various methods for hydrogen production, methane pyrolysis, which produces hydrogen without emitting carbon dioxide, has gained substantial attention. This study evaluated the self-sustainability of a new hydrogen production system based on methane pyrolysis, in which a portion of the hydrogen produced is used as combustion fuel rather than relying on catalysts and electrical heating. Coupled heat transfer and one-dimensional reaction simulations employing two plug-flow reactors of a counterflow double-pipe heat exchanger were conducted to investigate the feasibility and efficiency of the proposed system, as well as the influence of flow conditions on hydrogen production. The results confirmed system viability, informed the estimation of hydrogen production rates, and provided methane conversion rate data emphasizing the critical role of low-flow conditions and residence time in system efficiency. Additionally, the production of carbon constituted a significant aspect of system efficiency. These findings indicate that the proposed system can produce environmentally friendly hydrogen, contributing to its potential utilization as a sustainable energy source.