In an integrated geothermal biorefinery, low-grade geothermal heat is used as process heat to allow the co-products of biofuel production to become available for higher-value uses. In this paper we consider integrating geothermal heat into a biochemical lignocellulosic biorefinery so that the lignin-enriched residue can be used either as a feedstock for chemicals and materials or for on-site electricity generation. Depending on the relative economic value of these two uses, we can maximize revenue of a biorefinery by judicious distribution of the lignin-enriched residue between these two options. We quantify the performance improvement from integrating geothermal energy for an optimized system. We then use a thermodynamic argument to show that integrating geothermal heat into a biorefinery represents an improvement in overall resource utilization efficiency in all cases considered. Finally, possible future technologies for electricity generation are considered which could improve this efficiency further. (C) 2010 Elsevier Ltd. All rights reserved.