Anaerobic digestion renewable energy produces electricity through the decomposition of organic matter in silos, with the addition of microorganisms and in the absence of oxygen. It is similar to composting, although this takes place with oxygen.

Manure, vegetation and wastewater are common additions to AD silos. The process by which these products are broken down creates methane, which is then burned to produce electricity. The surplus of these raw materials and the by-product of sanitised compost ensure that anaerobic digestion renewable energy plants can often be found on farms.