Biogas has a unique position among all renewable energy sources for it can address many different demands; electricity, heat, vehicle fuel, fertilizer, waste treatment. Biogas can be combusted in a gen-set to generate electricity and heat or after upgrading to biomethane it can be used as vehicle fuel or feed into gas grid as a substitute of natural gas. Due to these flexible application possibilities, biogas is an advantageous option among all energy technologies particularly in the developing countries which are dependent on imported fossil fuels and facing waste management problems. In this thesis, anaerobic digestion technology and utilization methods of biogas are discussed. The status of biogas production and utilization in Turkey is examined along with the legal background. It was expressed that agricultural wastes represent a high potential for biogas production. The key study addressing the vehicle fuel demand of the farms resulted to be economically feasible. However, biogas market in Turkey is still initiating and there are some legal barriers restricting the penetration of biogas energy.