An integrated gasification combined cycle (IGCC) may be used to generate steam and power while providing a capture-ready CO2stream. This work addresses techno-economic optimization of an IGCC integrated with the utility systemfor a process site, with the aim of cost-effective reduction of CO2emissions. The IGCC can generate power andproduce steam in parallel with the site utility system; integration of the IGCC into the site utility system meansthat the heat recovered from the IGCC is fed to the utility system, where it is used to generate steam to meet siteheat and power demand. A relatively rigorous simulation model of the IGCC is applied to explore steam and powergeneration opportunities for various fuel flow rates. A simple, linear model is regressed from these simulation resultsto correlate fuel consumption and steam and power generation by the IGCC. The simple model is integrated into amodel for simulation and optimization of the site utility system; the operating conditions of the overall system (IGCCand site utility system) can then be optimized to minimize the operating cost, taking into account the capacity andefficiency of equipment such as boilers and steam turbines, the cost of fuel, the cost or value of power, and costsassociated with CO2emissions. The proposed optimization method is illustrated by application to an industriallyrelevant case study. The results indicate that integrating an IGCC with a site utility system can provide an effectiveroute for cogeneration of heat and power with low carbon emissions and low operating costs, although the economicbenefits are sensitive to fuel, power and emissions-related costs.