A system and method for extracting waste heat from the exhaust (20) of a biomass dryer (14), such as in a grain alcohol plant (10). A boiler circuit (74) provides steam at a high pressure to a balance of the plant (64). A recovered energy circuit (76) extracts heat from the exhaust and provides steam (60) at an intermediate pressure, thereby eliminating the need for a pressure reducing valve in order to satisfy an intermediate pressure steam demand in the plant. Working fluids in the boiler and recovered energy circuits are intermixed in a boiler feed vessel (72).
