The growing global demand for energy and the urgent need to reduce carbon emissions have intensified interest in renewable energy sources and technologies that support sustainable resource management. One of the most promising directions is the integration of circular economy principles into the processing of agricultural residues, enabling simultaneous improvements in energy security, environmental sustainability, and raw material efficiency. This study examines a circular economy model for biofuel production from cotton residues generated during cotton cultivation and primary processing. The proposed model incorporates sequential stages including biomass collection, logistics optimization, preprocessing, anaerobic digestion for biogas production, and thermomechanical conversion for generating solid biofuels such as pellets or briquettes. In addition, by-products such as digestate are reintegrated into agricultural applications as organic fertilizers, ensuring a fully closed-loop system.

The conducted analysis demonstrates that implementing circular material flows reduces waste volume by more than 80%, increases the energy utilization coefficient of biomass, and strengthens local energy resilience. Economic evaluation indicates that the circular model decreases biofuel production costs through optimized operational cycles and diversification of end products. The model also mitigates environmental impacts by lowering greenhouse gas emissions and preventing the open burning of agricultural residues. The results confirm the feasibility and high potential of circular technologies in the agro-energy sector, showing that cotton waste can serve as a reliable resource for developing a sustainable bioenergy system.