The technical and economical feasibilities of a novel integrated biomass gasification and fuel cell combined heat and power (CHP) system were analyzed for supplying heat and power in an ethanol plant from distillers grains (DG) and corn stover. In a current dry-grind plant with an annual production capacity of 189 million liters (50 million gallons) of ethanol, the energy cost for ethanol production using natural gas at a price of 6.47 US$/GJ for processing heat and commercial grid at a price of 0.062 US$/kWh for electrical power supply was 0.094 US$/liter. If the integrated CHP system using wet DG with 64.7% moisture on a wet basis at 105 US$/dry tonne and corn stover with 20% moisture at 30 US$/dry tonne as feedstock was used to supply heat and power in the ethanol plant, the energy costs for ethanol production would be 0.101 US$/liter and 0.070 US$/liter, which are 107% and 75% of the current energy cost for ethanol production, respectively. To meet the demand of processing heat and power in the ethanol plant, the integrated CHP system required 22.1 dry tonnes of corn stover with 20% moisture or 14.5 dry tonnes of DG with 64.7% moisture on a wet basis per hour, compared with the available 18.8 dry tonnes of DG per hour in the ethanol plant. High-value chemicals such as policosanols, phytosterols and free fatty acids can be extracted out of the raw DG to reduce the cost of DG as a feedstock of the integrated CHP system. The energy cost for ethanol production using the integrated CHP system with corn stover and DG as the feedstock for supplying heat and power can be reduced further by increasing ethanol production scale, decreasing the moisture content of biomass feedstock, and decreasing thermal energy to electricity output ratio of the CHP system. in terms of the energy efficiency of the integrated CHP system and the energy cost for ethanol production, the moisture content of the feedstock going into the integrated CHP should be lower than 70% on a wet basis. (C) 2009 Elsevier Ltd. All rights reserved.