A sustainable method and system for producing bio-fuels from citrus peels and the recovery of limonene and pectin prior to fermentation of the peel solids. In one embodiment a sustainable method and system for the concurrent recovery of limonene and pectin from citrus peels is disclosed. The peels are optionally zested, mixed with water and an acid, and then exploded in a jet cooker or a pressurized extruder. The exploded peels are transferred to a flash vessel where the remaining limonene and water vapor are separated into water and limonene. The pectin fraction is removed from the flash tank and extracted by centrifuge, precipitation and/or filtration. The remaining peel solids are fermented in an anaerobic digester which produces methane, ethanol, acids, CO2 or other end products which can be used as fuel for power generation equipment sufficient to supply the processing system for sustainable operations as described herein.
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