Biogas is generated from anaerobic digestion of complex organic wastes. The present study focuses on efficient and cost effective use of biogas digester for the production of biogas from recalcitrant lignocellulosic waste (pine needles). Although production of biogas using anaerobic digestion has been employed in Himachal Pradesh but it is not as yet a successful technology due to various limitations. In the present study feasibility of a compact design of biogas plant is verified with the help of biogas plant installed in our university campus. It is found that biogas plant used for the study is suitable for places with low population density. The cellulose content in pine needles is found to be around 55% making it suitable biomass for energy generation. Pine needles used here as substrate were mechanically comminute to very fine size (1-2mm) before being co-digested with sewage waste water. It is noticed that biogas production peaked from1.4 l\day to1.9 l\day during winter month, where as it was7.3 l\day during months of March and April. The reduction in volatile solids was also noticed during the months of March and April which was close to 64% during April when compared to its value in winters. The design of biogas plant was found suitable to a major part of Himachal Pradesh.