Reed canary grass (RCG) is a native perennial grass with a wide range of uses that naturally occurs in moist habitats. The conducted research indicates the possibilities of RCG cultivation outside natural, humid habitats in monoculture on sandy soils in temperate climates to obtain biomass and seeds. The influence of two factors was analysed: (1) fertilisation with compost from urban greenery in doses of 0, 10, and 20 Mg·ha−1 and (2) mineral nitrogen fertilisation in doses of 0, 40, 80, and 120 kg·ha−1. Compost fertilisation (10 and 20 Mg·ha−1) increased dry matter yields in all years of the study, by 12.1% and 41.0%, respectively. Also, nitrogen fertilisation in doses of 40, 80, and 120 kg·ha−1 increased dry matter yield by 26.8%, 41.6%, and 65.0%, respectively. When harvesting RCG plants for energy biomass at their stage of full maturity, a significant seed yield of 242 to 600 kg·ha−1 can also be obtained in the first three years, while in the fourth year of use, the seed yield was almost three times lower (90–158 kg·ha−1). The obtained results indicate that, in sandy soils, the use of compost fertilisation in RCG cultivation can partially or entirely replace mineral fertilisation and ensure high and stable yields. An additional benefit may be the achievement of a high seed yield in the initial years of cultivation. The use of organic fertilisers and the independence from mineral fertilisers can significantly increase the profitability of bioenergy crops.