Annually, a substantial volume of plastic waste is produced, leading to elevated CO2 emissions and environmental contamination. This research investigates the conversion of waste plastic into a fuel source within a chemical loop cycle to capture CO2 and generate high-purity hydrogen, utilizing iron-based spinel oxides as oxygen carriers. The study evaluates CuFe2O4, NiFe2O4, CoFe2O4, and MnFe2O4 as potential candidates. Process parameters and thermal dynamics are analyzed using ASPEN Plus software. The temperature of the fuel reactor (FR) has minimal impact on CO2 purity and H2 yield, while the oxygen supply coefficient (Φ) plays a crucial role. Increasing Φ enhances oxidation-reduction reactions, leading to higher CO2 purity in the FR. The sequence of CO2 selectivity among different oxygen carriers (OCs) is CuFe2O4 > NiFe2O4 > CoFe2O4 > MnFe2O4. The achieved maximum CO2 purities are 99.98%, 99.05%, 93.67%, and 88.79%, respectively. CoFe2O4 and NiFe2O4 demonstrate higher H2 yield in the secondary reactor (SR), whereas CuFe2O4 and MnFe2O4 exhibit lower yields. Optimal Φ values of 1.87 for CoFe2O4, CuFe2O4, and NiFe2O4, and 3.75 for MnFe2O4 result in maximum H2 yields of 3.74 Nm3/kg, 1.49 Nm3/kg, 1.49 Nm3/kg, and 3.00 Nm3/kg, respectively. Concerning heat management, CuFe2O4 and NiFe2O4 achieve thermal equilibrium by efficiently utilizing internally generated heat. In the context of waste plastic utilization for carbon capture and hydrogen production, CoFe2O4 (with an FR temperature of 800°C and Φ value of 2.87) emerges as the most suitable OC.