Biogas is one of the renewable energy sources formed as a result of the anaerobic digestion process of organic matter. There are three kinds of biogas: biogas produced during digestion of sewage sludge generated at municipal wastewater treatment plants, biogas recovered at landfills and agricultural biogas from animal waste and crops. Despite a big potential for biogas production from animal slurry (109 PJ) agricultural biogas sector in Poland is still in a development phase. Thanks to international and European legislation promoting energy generation from renewable sourcesthe agricultural biogas area has a big development potential. Technological and environmental market conditions create optimistic perspectives for fast development of agricultural biogas sector in Poland while the economic market conditions forecast a moderate interest in this area. Biogas can be used in many different applications: energy and heat production as well as vehicle fuel.