Energy conservation is a central concern of the current industrial world, where increasing efficient energy usage is the only way of reducing a high energy demand. In the present study the optimization of a pulp and paper mill with a cogeneration plant has been carried out. The optimization was realized with a methodology which includes exergy, exergoeconomics, thermoeconomics and pinch analysis. The proposed methodology was useful in determining not only the best plant operating conditions but also establishing the components or subsystems with the highest irreversibilities. As a result of the study, operation changes in the recovery boiler, the turbogenerator, the thermal treatment and the deaerator were realized. Due to the higher irreversibility in the actual evaporator line, a new line of evaporators was proposed. Also, an innovative heat recycling technology as to the use of heat transformers was proposed in order to reduce waste heat discharged to the atmosphere. The results obtained with the proposed methodology, which integrates the different optimization methods, allowed reaching higher efficiencies and lower operational costs than those obtained with the optimization methods working separately. (C) 2009 Elsevier Ltd. All rights reserved.