Two lignin (moisture content: 50 wt%) conversion processes at a capacity of 200 t-wet/d were simulated to calculate the product yield, the heat and power required for the operation, leading to the balance of payment (BP), which is the income per unit weight of processed lignin. One of the studied processes was the 1,3-butadiene (1,3-BD) production process. The other process, used as a competitive process, was the gasification power generation process (GPG). For the GPG, 257,911 kWh/d of power can be sold. The 1,3 BD production process was improved by power generation using gases unavailable for 1,3-BD production and the regeneration of CO2 absorption liquid using the surplus heat through the pinch analysis. The improved ideal 1,3-BD production process can supply not only 1,3-BD (14.0 t/d) but also heat (1383 GJ/d) and power (82,577 kWh/d). When the power selling price and 1,3-BD price were changed, the 1,3-BD production process had a breakeven point for the power selling price against the GPG. The 1,3-BD production process from lignin will have higher BP than the GPG if the performance of the employed catalysts can be enhanced when taking the future power selling price into account. (C) 2018 Elsevier Ltd. All rights reserved.