The greenhouse gas emissions from the boiler of pulp and paper industries can be minimized by adapting chemical looping combustion (CLC) technology. This work aims to analyze the energy, exergy, economic, and exergoeconomic performance of an industrial scale CLC plant for district heat and electricity generation using waste bark from the paper and pulp industry. The CLC plant with one natural ore and one industrial waste oxygen carrier (OC) is modeled using Aspen Plus. The performance of the CLC plant has been compared to Örtofta combined heat and power plant without CO2 capture and with post-combustion CO2 capture as the reference cases. Results showed that the CLC-based power plant is energetically, exegetically, and economically efficient compared to the reference cases. The circulating fluidized bed boiler unit contributes the highest exergy destruction (about 50–80%). Among the CO2 capture plants, the CLC plant with ilmenite has the lowest levelized cost of district heat (4.58 € GJ−1), and a payback period (9.69 years) followed by the CLC plant with LD slag (5.91 € GJ−1 and 11.84 years), and the plant with PCC (6.94 € GJ−1 and 13.58 years). The exergoeconomic analysis reveals that the CLC reactors have the highest cost reduction potential, followed by the steam turbine.