Models of dimethyl ether (DME) and methanol synthesis plants have been designed by combining the features of the simulation tools DNA and Aspen Plus. The plants produce DME or methanol by catalytic conversion of a syngas generated by gasification of woody biomass. Electricity is co-produced in the plants by a gas engine utilizing the unconverted syngas. A two-stage gasifier with a cold gas efficiency of 93% is used, but because of the design of this type of gasifier, the plants have to be of small-scale (5 MWth biomass input). The plant models show energy efficiencies from biomass to DME/methanol + electricity of 51-58% (LHV), which shows to be 6-8%-points lower than efficiencies achievable on large-scale plants based on torrefied biomass pellets. By using waste heat from the plants for district heating, the total energy efficiencies become 87-88%. (C) 2011 Elsevier Ltd. All rights reserved.