Renewable energy is the latest approach of the Malaysian government in an effort to find sustainable alternative energy sources and to fulfill the ever increasing energy demand. Being a country that thrives in the service and agricultural sector, bioethanol production from lignocellulosic biomass presents itself as a promising option. However, the lack of technical practicality and complexity in the operation system hinder it from being economically viable. Hence, this research acquired multiple case studies in order to provide an insight on the process involved and its implication on production as well as to obtain a cost analysis of bioethanol production. The energy input and cost of three main components of the bioethanol production which are the collection, logistics, and pretreatment of rice straw were evaluated extensively. The theoretical bioethanol yield and conversion efficiency obtained were 250 L/t and 60% respectively. The findings concluded that bioethanol production from rice straw is currently not economically feasible in Malaysia’s market due to lack of efficiency in the pretreatment phase and overbearing logistics and pretreatment costs. This work could serve as a reference to future studies of biofuel commercialization in Malaysia.