Sugarcane is one of the most important industries of the Brazilian economy, and its main products are sugar and ethanol. Most of the industrial plants produce both products in an integrated process, in which the sugarcane bagasse is a by-product that can be used as a fuel in the cogeneration system. The bagasse is used as the only fuel of the plant, supplying all energy required for the process, and also producing electricity surplus that may be sold to the grid. In this paper, exergy analysis is used to assess an integrated sugar and ethanol plant with its cogeneration system. The plant was divided into eight sub-systems to evaluate the irreversibility generation in each separately. Data from typical sugarcane factories in Brazil, which produce sugar and ethanol, were used in the process simulation. The analysis has shown that the sub-systems with the highest contribution for the total irreversibility generation of the plant were co-generation, juice extraction and fermentation. Some improvements are proposed, including process thermal integration and the introduction of more efficient equipments for prime mover and steam and electricity generation. The analysis indicated that the total irreversibility could be reduced by 10% should those changes be implemented. (c) 2008 Elsevier Ltd. All rights reserved.