The methane produced from the anaerobic digestion of organic wastes and energy crops represents an elegant and economical means of generating renewable biofuel. Anaerobic digestion is a mature technology and is already used for the conversion of the organic fraction of municipal solid wastes and excess primary and secondary sludge from waste‐water treatment plants. High methane yield up to 0.45 m3 STP CH4/kg volatile solids (VS) or 12 390 m3 STP CH4/ ha can be achieved with sugar and starch crops, although these cultures are competing with food and feed crops for high‐quality land. The cultivation of lignocellulosic crops on marginal and set‐aside lands is a more environmentally sound and sustainable option for renewable energy production. The methane yield obtained from these crops is lower, 0.17–0.39 m3 STP CH4/kg VS or 5400 m3 STP CH4/ha, as its conversion into methane is facing the same initial barrier as for the production of ethanol, for example, hydrolysis of the crops. Intensive research and development on efficient pre‐treatments is ongoing to optimize the net energy production, which is potentially greater than for liquid biofuels, since the whole substrate excepted lignin is convertible into methane. Copyright © 2010 Crown in the right of Canada