A hybrid method for producing energy from a carbonaceous material including the steps of: heating the carbonaceous material under a reduced oxygen atmosphere in a distillation plant to generate distillate vapours; processing the resulting distillate vapours; transferring the char residue from the distillation plant to a power station boiler; and combusting the char residue in the power station boiler for the generation of electrical power. The char residue is transferred to a power station boiler while the char residue retains heat from the heating in the distillation plant. An integrated energy conversion system including: a distillation plant for the destructive distillation of carbonaceous material to afford distillate vapours and a char residue; a power station boiler; a means of transferring the char residue at a temperature between 300 to 700.degree. C. from the distillation plant to the bed power station; and collection means for the distillate vapours.