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Whenever biological material is allowed to naturally decompose, both aerobic and anaerobic bacteria digest the proteins and other compounds, with the final products of the chemical reactions including water, carbon dioxide, nitrogen gas, and methane. The gases produced through anaerobic digestion can be captured and used for energy production. This process occurs naturally in compost piles, in dumps, in water and waste treatment plants, and other collections of biological waste from plants and animals.

Cogeneration refers to the process of capturing the fuel produced in the decomposition process, and often refers to the capture that can occur at waste treatment plants. Many commercial farms use the process of cogeneration to reduce their operating costs: the emitted gases from the biodegradation of the organic waste is captured and used to generate heat or power for electricity. Cogeneration works on a smaller scale as well: energy-savvy farmers and even single households can harness methane from the degradation of simple compost piles, perhaps sending the gas through pipes and valves to the kitchen for use in cooking. Commercial units are available for indoor use as well.

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