Two of the methods for converting biomass to fuel are hydrothermal carbonization (HTC) and anaerobic digestion (AD). This study is aimed at designing and analyzing two scenarios for bioenergy production from undervalued biomass (sawdust). In one of the scenarios (direct combustion or DC), raw biomass is burned in a combustor to provide the heat that is required by the Rankine cycle to generate electricity. In the other scenario (HTC-AD), the raw biomass first undergoes HTC treatment. While the solid product (hydrochar) is used to produce power by a Rankine cycle, the liquid by-product undergoes an AD process. This results in fuel gas production and it can be used in a Brayton cycle to generate more power. Energy and mass balance analysis of both scenarios were developed for each unit process by using Engineering Equation Solver (EES). The required data were obtained experimentally or from the literature. The performances of the proposed systems were evaluated, and a sensitivity analysis was presented to help in finding the best operational conditions.