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Abstract Polyethylene furandicarboxylate (PEF) is a novel bio‐based replacement for polyethylene terephthalate (PET). The objective of our study is to improve its economic and environmental competitiveness by applying superstructure‐based pathway optimization, process simulation, techno‐economic analysis, and life‐cycle assessment for the industrial‐scale PEF production. A PEF production pathway that fully utilizes second‐generation biomass is proposed. The mass balance analysis indicates that the carbon utilization of second‐generation biomass could reach up to 21.4%. We found that this production pathway can economically compete with fossil‐based polyethylene terephthalate (PET) under reasonable operating conditions. It achieves over 30% savings in non‐renewable energy use (NREU) and a 38% reduction in carbon emissions. Risk assessment suggests that implementing policies related to NREU and carbon emissions could reduce the investment risk of this PEF production project to less than 20%. This work establishes technical and policy benchmark goals to achieve the economic competitiveness of PEF over PET.