Bio-energy with carbon capture and storage (BECCS) is widely recognised as an important carbon dioxide removal technology. Nevertheless, BECCS has mostly failed to move beyond small-scale demonstration units. One main factor is the energy penalty incurred on power plants. In previous studies, this penalty has been determined to be 37.2 %?48.6 % for the amine capture technology. The aim of this study is to quantify the energy penalty for adding the hot potassium carbonate (HPC) capture technology to a biomass-fired combined heat and power (CHP) plant, connected to a district heating system. In this context, the energy driving the capture process is partly recovered as useful district heating. Therefore, a modified energy penalty is proposed, with the inclusion of recovered heat. This inclusion is especially meaningful if the heat has a substantial monetary value. The BECCS system is examined using thermodynamic analysis, coupled with modelling of the capture process in Aspen PlusTM. Model validation is performed with data from a BECCS test facility. The results of this study show that the modified energy penalty is in the range of 2%?4%. These findings could potentially increase the attractiveness of BECCS as a climate abatement option in a district heating CHP setting.