Proceedings available at: http://www.extension.org/67633 The concept of utilizing feedlot manure in an anaerobic digester to power an ethanol plant, which then produces feed for cattle, has been called a closed loop system. In this system inputs are minimized and outputs are used by another component. This research looked at differences in manure quality within this system. Trial 1 considered incorporating distillers grains into the cattle diet and the effects on methane potential of the manure. For this system to be utilized by the feedlot industry in Nebraska, the manure collected for anaerobic digestion must be collected from soil-based open feedlot pens which account for over 95% of the feedlot cattle raised in Nebraska. Trial 2 addressed the methane potential of open-lot feedlot manure and its feasibility for anaerobic digestion.