The challenges of replacing fossil fuel with renewable energy in steel industry furnaces include not only reducing CO2 emissions but also increasing the system energy efficiency. In this work, a multi-stage gasification system is chosen for the integration with a heat treatment furnace in the steel powder industry to recover different rank/temperature waste heat back to the biomass gasification system, resulting higher system energy efficiency. A system model based on Aspen Plus was developed for the proposed integrated system considering all steps, including biomass drying, pyrolysis, gasification and the combustion of syngas in the furnace. Both low temperature (up to 400 degrees C) and high temperature (up to 700 degrees C) heat recovery possibilities were analysed in terms of energy efficiency by optimizing the biomass pretreatment temperature. The required process conditions of the furnace can be achieved by using syngas. No major changes to the furnace, combustion technology or flue gas handling system are necessary for this fuel switching. Only a slight revamp of the burner system and a new waste heat recovery system from the flue gases are required. Both the furnace efficiency and gasifier system efficiency are improved by integration with the waste heat recovery. The heat recovery from the hot furnace flue gas for biomass drying and steam superheating is the most promising option from an energy efficiency point of view. This option recovers two thirds of the available waste heat, according to the pinch analysis performed. Generally, depending on the extent of flue gas heat recovery, the system can sustain up to 65% feedstock moisture content at the highest pyrolysis temperature studied. (C) 2016 Elsevier Ltd. All rights reserved.