The invention relates to a method for producing electricity and conversion products such as ethanol, comprising the steps of: i) separating a starch source into a starch-rich fraction and a residual fraction; ii) heating the starch-rich fraction for the purpose of gelling the starch; iii) releasing the gelled starch from the starch-rich fraction; iva) converting the gelled starch enzymatically into sugars; ivb) converting the sugars fermentatively into the conversion products; v) further processing the conversion products from the conversion medium; vi) generating biogas from residual fraction; vii) generating electricity and heat from biogas and/or residual fraction via cogeneration of heat and electricity; and viii) using the generated heat in one or more steps i) to vi).