In this study, membrane distillation integrated with district heating network has been investigated for applications in a bioethanol production plant. The specific application considered was recovery of ethanol from CO2 scrubber water, where the main objective of this study was to develop an air gap membrane distillation system that is driven by heat from district heating network, to offload the distillation column. Experiments on membrane distillation lab unit along with data from the industry were used to assess the technologic and economic feasibilities of this system. Comparisons were also made between the distillation columns and membrane distillation units in terms of heat demand and economic savings. Results of the study showed that MD can be a competitive technology for ethanol concentration depending on availability of low-grade heat like district heating or waste heat.