Due to increase in demand for fossil fuels and aspects of natural environment protection, there is a major need to utilize alternative and renewable energy sources in order to promote sustainable development. The use of biogas as a source of renewable energy could provide effective and alternative way to satisfy a remarkable part of this demand for the transportation sector. As biogas has high inert content of carbon dioxide, its heating value is lower compared to CNG. Applying these low heating value renewable gaseous fuels for means of transport is not fully worked out yet because their combustion characteristics significantly differ from liquid fuels that are currently used or propane, or natural gas based systems that are becoming more and more popular in transportation. Biogas is not in common use, thus its utilization is recently limited for engines with conventional equipment burning other fuels. Thus, theoretical and experimental analysis was made to investigate the usability of biogas. On the basis of conducted investigation, it was found that effective biogas utilization as a fuel for means of transport can be achieved in a serial hybrid system consisted of internal combustion reciprocating engine.