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Today’s biomass-fired combined heat and power (CHP) plants have surplus heat production capacity during warmer times of the year. In order to allow them to increase their electricity production, it is essential to find a use for the surplus heat.

Additionally, the transport sector is struggling with high fuel prices and the contribution of CO₂ emissions to global warming. A promising way of reducing the negative effects caused by combustion of fossil fuels in the transport sector is to mix ethanol with gasoline, or to use pure ethanol in modified engines. Ethanol is produced by fermentation at low temperatures and the production process could be integrated with CHP plants.

The first generation of ethanol production as fuel has recently been criticized for competing with food crops and for its production chain being a larger polluter than was first thought. The second generation of ethanol production from lignocellulosic materials offers very promising results, but this process has several steps that are energy demanding.

This thesis presents the findings of research on the configuration of a CHP plant with an integrated second generation ethanol production process. It also presents the operational economics and optimal locations for such plants in Sweden. Two case studies were performed to compare different feedstocks for ethanol production.

The results show that when electricity prices are high, CHP plants benefit from heat consumption. Even with low yields in an ethanol production process, the integrated plant can be profitable. The plant must be located where there is sufficient heat demand. A cellulosic ethanol production process can work as a heat sink with profitable outcomes even with the current state of development of cellulosic ethanol technology.