We present a comparison of three strategies for the introduction of new biorefineries: standalone and centralized drop‐in, which are placed within a cluster of chemical industries, and distributed drop‐in, which is connected to other plants by a pipeline. The aim was to quantify the efficiencies and the production ranges to support local transition to a circular economy based on biomass usage. The products considered are biomethane (standalone) and hydrogen/biomethane and sustainable town gas (centralized drop‐in and distributed drop‐in). The analysis is based on a flow‐sheet simulation of different process designs at the 100 MWbiomass scale and includes the following aspects: advanced drying systems, the coproduction of ethanol, and power‐to‐gas conversion by direct heating or water electrolysis. For the standalone plant, the chemical efficiency was in the range of 78–82.8 % LHVa.r.50 % (lower heating value of the as‐received biomass with 50 % wet basis moisture), with a maximum production of 72 MWCH4
, and for the centralized drop‐in and distributed drop‐in plants, the chemical efficiency was in the range of 82.8–98.5 % LHVa.r.50 % with maximum production levels of 85.6 MWSTG and 22.5 MWnormalH2
/51 MWCH4
, respectively. It is concluded that standalone plants offer no substantial advantages over distributed drop‐in or centralized drop‐in plants unless methane is the desired product.