Three optional pellet production processes integrated with an existing biomass-based CHP plant using different raw materials (wood chips and solid hydrolysis residues) are studied. The year is divided into 12 periods, and the integrated biorefinery systems are modeled and simulated for each period. The annual economic performance of three integrated biorefinery systems is analyzed based on the simulation results. The option of pellet production integrated with the existing CHP plant with the exhaust flue gas and superheated steam as drying mediums has the lowest specific pellet production cost of 105 epsilon/t(pellet), the shortest payback time of less than 2 years and the greatest CO(2) reduction of the three options. An advantage in common among the three options is a dramatic increase of the total annual power production and significant CO(2) reduction in spite of a small decrease of power efficiency. (C) 2011 Elsevier Ltd. All rights reserved.