Agricultural residue (AR) is a major cradle of biomass that can be converted into valuable biofuels. Bio-fuels are renewable and sustainable and can help to lessen our dependence on fossil fuels. There are a number of different ways to convert agricultural waste into bio-fuels of bio-ethanol, biodiesel, biogas, and bio-hydrogen. The transformation of AR into bio-fuels is an encouraging technology that has the prospective to diminish our reliance on fossil fuels and help to protect the environment. Conversely, around are a sum of encounters that essential to be addressed earlier this approaches can be extensively accepted. These encounters comprise, the budget of production, environmental impact, and the availability of feedstock. Despite these challenges, the conversion of agricultural waste into bio-fuels is an encouraging strategy with the prospective to make a substantial influence to our energy future. As the technology continues to develop and the cost of production decreases, bio-fuels are likely to become more widely available and affordable. This will make them a more attractive option for consumers and businesses. In this chapter we will discuss on feasibility of raw materials, and technology development on bio-fuels and detailed discussion on ethanol to methane and its techno economy prospects.