Abstract: The invention relates to a method for reduction of the carbon intensity of an ethanol production process by utilizing waste heat from a co-located water electrolysis system for heating duty of the ethanol plant; using oxygen (O2) produced by the water electrolysis system for oxycombustion of hydrocarbon fuel to produce the required thermal energy; and capturing carbon dioxide (CO2) from the fermentation process and from the oxycombustion process, combining it with hydrogen (H2) produced by electrolysis, to produce additional hydrocarbon fuels and durable chemicals.