Biomass energy is renewable energy source that comes from the material of plants and animals. Forms of biomass energy are bio-ethanol, bio methanol, and biodiesel. Bio-ethanol is one of the most important alternative energy sources that substitute the fossil fuels. The focus of this research is to produce bio-ethanol from waste office paper. Five laboratory experiments were conducted to produce bio-ethanol from wastepaper. The wastepaper was dried in oven and cut in to pieces. Then it passed through dilute acid hydrolysis, fermentation and distillation process respectively. High amount of ethanol was observed at 20 ml/g (liquid to solid ratio) and at the time of 2hr. Cost and economic analysis for ethanol production from wastepaper was performed. Results from the analysis indicated a paper to ethanol plant was feasible from the economic point of view with rate of return (RR) 38.61% and the payback period of 2.2 years.