The present study reports on the technical, economic and environmental analysis of small-scale gasification-ICE systems integrated into sawmills in Chile. Two scenarios were considered, (i) a 100 kWe system for self-consumption in a sawmill and (ii) a 1000 kWe system for using residues from different sawmills. The gasification system was technically assessed by a comprehensive mathematical model implemented on Aspen One 10.0, while economics were studied by the Levelized cost of electricity (LCOE) and environmental impacts were quantified by a Life cycle assessment of forestry, sawmills and power plant processes. Results demonstrate that heat recovery is critical for the process economy, which exhibits an LCOE between 0.15 and 0.32 USD/kWh, and a return on investment of 6.4 years. Nevertheless, the gasification system is far for being an economically-feasible alternative for Chile, where electricity price is 0.08-0.10 USD/kWh. In contrast to economic assessment, the implementation of the gasification ICE power plant would be a promising alternative for decarbonization of the Chilean energy matrix, showing a reduction of 93% of carbon emissions versus actual practices (viz. co-firing process). From the environmental point of view, biomass harvesting and transport are the critical stages during the whole life cycle of energy production, regardless of the scenario. (C) 2018 Elsevier Ltd. All rights reserved.