Biogas is produced through anaerobic digestion, a biological process where microorganisms break down organic matter like food scraps and animal waste in the absence of oxygen. The process has 4 stages - hydrolysis, acidogenesis, acetogenesis, and methanogenesis - where different bacteria and microorganisms break down the material into biogas, which is primarily methane and can be used as a renewable energy source. Various organic waste materials can serve as feedstocks for anaerobic digestion to produce biogas.