It is inevitable that with large volume and high density poultry productions, there will be large
quantities of poultry waste produced in Kathmandu and throughout Nepal. Poultry waste produced as
the daily feeding of chicken both from broilers and layers in the country is largely used as organic
manure for agricultural purposes. The poultry industry is growing day by day concentrated within the
urban as well as rural community. The intent of this paper is to show that the chicken waste used as
feed material to produce biogas can tap additional energy from the otherwise wasted energy and make
the poultry industry co-exist with the environment of the neighbors. This research will identify and
evaluate the economic feasibility to produce biogas from poultry waste. The research is of particular
interest to the poultry farmers and to the community in the Kathmandu valley as the people are
becoming very conscious of environmental impact due to pollution. The study has focused on various
parameters relating to physico-chemical characteristics of the substrates, fertilizing value of digested
poultry waste, assessment of odour level in and around poultry farm and cost-benefit aspects of biogas
production from poultry wastes. It has been concluded that biogas can be generated in Nepal with a
huge probability of energy for use in households as well as industrial use which can also cut the
supply of non-conventional fuels and balancing the environment aspects using poultry waste digestion
in Nepal.