The production of second generation biofuel is essential for limiting food versus fuel competition. Butanol is one of the important biofuel for the future. Agricultural by-products namely bagasse and potato peel were hydrolyzed to produce readily fermented sugar for butanol fermentation. The butanol concentration was 1 – 2 g/l. To test the electricity generation, a customized generator was used for butanol combustion. The electricity produced was up to 1300 watts. Further improvements are needed in the hydrolysis method, medium composition, and generator design. This research has demonstrated that bagasse and potato peel are potential feedstock for producing butanol for generating electricity
