The aim of this project was to examine feasibility of the biogas production in Bosnia and Herzegovina. Big>East Economic Model was used to asses the potential gas, heat, and electricity production. The project's economic viability was checked over 15 year period. The underlying assumptions, licensing procedure, and legal framework are explained. The production and use of biogas from anaerobic co-digestion of 20.000 t/year of manure, maize, and grass and cogeneration of heat and electricity from the produced biogas would provide Net Present Value (NPV) of 871.236 EUR. The results show that exploiting the internal value chain of biogas can provide the environmental and socio-economic benefits not only for the investor and involved farmers, but also for the society as a whole.