The present invention relates to an integrated gasification and hydroprocessing process. A hydrocarbonaceous fuel is first gasified to produce syngas, and then a portion of the hydrogen is removed from the syngas. The hydrogen is compressed and used as an excess reactant in a hydroprocessing unit. Hydrogen gas is recovered from the hydroprocessing unit product, purified, compressed and recycled to the hydroprocessing unit. The hydrogen-poor syngas is expanded in an expander that drives the compressor that compresses the recycled hydrogen gas. The expanded syngas is then combined with light hydrocarbons removed from the recycle hydrogen gas stream, combusted in a gas turbine and used for power generation.