Bio gas is a highly valuable energy source that can produce electricity and heat. Biogas (methane and carbon dioxide) is formed by the decomposition of organic matter in an oxygen-free environment. This method offers an attractive alternative of handling organic waste since most of the carbon dioxide in the waste is converted to bio gas, and the nutrients from the waste remains in the digestive residue. Bio gas production was considered by us with the aim to generate ash-free cooking gas, thereby drastically reducing costs of using other fuel products. Same time it is environment–friendly. The process of bio-gas production at Arya Tara is under construction and will be complete in the middle of January 2009.Part of the costs has been kindly funded by Kesang Doma Sherpa, CEO of Charity and Challenges and Sherpa Trekking Services, Sheela Raj, Isabelle Repaille, NGO H.O.P.E, and HIMAVAN from France. The rest of the costs has been borne by NWF.