Biogas typically refers to a gas produced by the biological breakdown of organic matter in the absence of oxygen. Biogas originates from biogenic material and is a type of biofuel. One type of biogas is produced by anaerobic digestion or fermentation of biodegradable materials such as biomass, manure or sewage, municipal waste, and energy crops. This type of biogas is comprised primarily of methane and carbon dioxide. The other principle type of biogas is wood gas which is created by gasification of wood or other biomass. This type of biogas is comprised primarily of nitrogen, hydrogen, and carbon monoxide, with trace amounts of methane.

The gases methane, hydrogen and carbon monoxide can be combusted or oxidized with oxygen. Air contains 21% oxygen. This energy release allows biogas to be used as a fuel. Biogas can be used as a low-cost fuel in any country for any heating purpose, such as cooking. It can also be utilized in modern waste management facilities where it can be used to run any type of heat engine, to generate either mechanical or electrical power. Biogas is a renewable fuel and electricity produced from it can be used to attract renewable energy subsidies in some parts of the world.