Anaerobic digestion of organic wastes has been widely used all around the world especially in the recent decades. In Iran however, there has not been a significant progress in this field mostly due to the abundant of petroleum and natural gas reservoirs. In this research, an economical assessment was made in order to investigate the possibility of development of a biogas plant in a poultry farm as a case study. The target farm was a 720000 birds located in Mashhad city, Khorasan province of Iran. The daily manure production is 120 on wet basis. The technical analysis in regard with biogas potential was made based upon the literature. All calculation was done with relatively high reliability factors. The result showed that the capital investment for biogas plant construction in the selected farm is around 12,100 million IRR. 2,471,000 m3/day of biogas could be produced. A revenue of 16,200 million IRR will be obtained from power sale to the government on an annual basis. The net yearly income would be 5,450 million IRR. The study showed that in contrast with the dominant thoughts, anaerobic digestion is not only competitive with common fossil fuels but also very efficient and economic.

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