Incorporating industrial symbiosis benefits into biorefinery opportunities can reduce new investment costs and possibly improve the green credentials of processes. The existing wood‐processing cluster at Kawerau, New Zealand, with easy access to wood‐processing residues, excess on‐site geothermal energy, and on‐site use of products, could provide significant symbiotic benefits for the development of biorefinery opportunities. To quantify the potential benefits of this site symbiosis, we undertook a detailed techno‐economic and risk analysis for co‐production of bark briquettes and tannin adhesive from wood bark in greenfield and in Kawerau scenarios. Kawerau site benefits were quantified and their impacts on opportunity viability were assessed. Symbiotic use of the tannin adhesive produced on site and the use of the geothermal heat available in Kawerau reduced the utility cost by 45% and total capital investment by 56% compared with a greenfield operation. This improved the overall economics significantly, with the internal rate of return increasing from 6 to 22%. Monte Carlo simulations showed that the water : bark ratio and tannin yield have profound effects on process economics. Process improvements show a greater effect on improving the overall economics than price volatilities of input materials. The study findings confirm the significant economic benefits of incorporating industrial symbiosis at existing wood‐processing sites, and help to identify research needs for tannin process improvements. © 2021 Argonne National Laboratory. Biofuels, Bioproducts and Biorefining published by Society of Industrial Chemistry and John Wiley & Sons Ltd