The rapid growth of biogas plants in Malaysian palm oil mills in recent times can be attributed to the keen interest of the industry to reduce the greenhouse gas (GHG) emissions from palm oil production, coupled with the potential benefits which can be realised by capturing and utilising the large quantities of biogas to produce renewable energy. During the initial development in the last five to six years, we have observed the applications of the various anaerobic digester technologies for biogas recovery mainly from palm oil mill effluent (POME) treatment systems, where to date, close to 10% of the palm oil mills have installed some forms of biogas-capture systems. Exponential growth is expected with this trend extending to cover all of the approximately 1000 mills in the ASEAN region. With the expansion of the biogas industry, the potential of the next generation biogas production using alternate sources can be expected. Palm oil mill residues, like POME slurry, solid palm waste materials (empty fruit bunches and oil palm by-products can become alternative or supplementary feedstock materials, to give much higher biogas yields than that from POME. Accompanying this development, various methods of utilisation of the biogas generated has been realised, but it was limited mainly to on-site applications in accordance with site specific factors. These include applications for thermal energy recovery in the different types of boiler systems and for power generation via gas engines for on-site use or connection to the grid. However, the challenges still remained for development of off-site utilisation for the biogas recovered. Prospective applications after upgrading of the biogas (biogas refining), such as compressed natural gas (CNG) equivalent (transport fuel), feeding to natural gas (NG) pipeline and bottling, and transportation for offsite industrial use, also can be foreseen.