Banana stem is being considered as the second largest waste biomass in Malaysia. Therefore, the environmental challenge of managing this huge amount of biomass as well as converting the feedstock into value-added products has spurred the demand for diversified applications to be implemented as a realistic approach. In this study, banana stem waste was experimented for bioethanol generation via hydrolysis and fermentation methods with the presence of Saccharomyces cerevisiae (yeast) subsequently. Along with the experimental analysis, a realistic pilot scale application of electricity generation from the bioethanol has been designed by HOMER software to demonstrate techno-economic and environmental impact. During sulfuric acid and enzymatic hydrolysis, the highest glucose yield was 5.614 and 40.61 g/L, respectively. During fermentation, the maximum and minimum glucose yield was 62.23 g/L at 12 h and 0.69 g/L at 72 h, respectively. Subsequently, 99.8% pure bioethanol was recovered by a distillation process. Plant modeling simulated operating costs 65,980 US$/y, net production cost 869347 US$ and electricity cost 0.392 US$/kWh. The CO 2 emission from bioethanol was 97,161 kg/y and SO 2 emission was 513 kg/y which is much lower than diesel emission. The overall bioethanol production from banana stem and application of electricity generation presented the approach economically favorable and environmentally benign.