The present work reviews the role of biogas as advanced biofuel in the renewable energy system, summarizing the main raw materials used for biogas production and the most common technologies for biogas upgrading and delving into emerging biological methanation processes. In addition, it provides a description of current European legislative framework and the potential biomethane business models as well as the main biogas production issues to be addressed to fully deploy these upgrading technologies. Biomethane could be competitive due to negative or zero waste feedstock prices, and competitive to fossil fuels in the transport sector and power generation if upgrading technologies become cheaper and environmentally sustainable.