A process for producing ethanol wherein stillage is recycled into the process as a source of heat and power. Specifically, stillage is spray dried and then combusted in a biomass boiler. Spray drier exhaust is exported to the main scrubber and employed to extract particulates. Flue gas from the boiler is used to produce high pressure steam and the cooled gas is recycled back to the spray dryer as a heat source. The high pressure steam is used by a turbine generator which in turn produces electric power and low pressure steam both of which are returned to the process. Ash remaining after combustion may be used as a fertilizer.