The energy, exergy and exergoeconomic analysis of a cement factory has been studied within two parts. This paper is the first part of the study which includes the thermodynamic and exergoeconomic methodology and formulations developed for such a comprehensive and detailed analysis. The second part of this study is about the application of the developed formulation which considers an actual cement plant located in Gaziantep, Turkey. The energy consumption by the cement industry is about 5% of the total global industrial energy consumption. It is also one of the world's largest industrial sources of CO2 emissions. In this paper, a cement plant is considered with all main manufacturing units. Mass, energy, and exergy balances are applied to each system. The first and second law efficiencies based on the energy and exergy analysis and performance assessment parameters are defined for the entire cement plant. The formulations for the cost of products, and cost formation and allocation within the system are developed based on exergoeconomic analysis. In order to obtain the optimal marketing price of cement and to decrease specific energy consumption of the whole plant, the cost analysis formulated here have substantial importance. (C) 2013 Elsevier Ltd. All rights reserved.