Hydrogen has emerged as a promising future energy source, but efficient, eco-friendly production and storage remain challenging. Life Cycle Assessment (LCA) is crucial for evaluating environmental impacts and guiding eco-design strategies. Among emerging techniques, magnesium hydrolysis for hydrogen production has gained attention. The presented LCA of a patented Mg-alloy with carbon and nickel additives identified nickel as the primary environmental impact contributor. To mitigate this, using ternary phases with minimal nickel content is proposed. Moreover, leveraging magnesium waste presents an opportunity to give alloys a second life, while enhancing the recycling of the resulting product, Mg(OH)2. Although LCA results show that magnesium hydrolysis has a lower environmental impact than steam reforming, further industrial-scale research is needed. This highlights the importance of ongoing investigation and refinement of magnesium hydrolysis as a green energy solution.