Anaerobic digestion (AD) has the potential to contribute to greenhouse gas emissions reductions, improve energy security, increase generation of decentralised renewable electrical and thermal energy, produce low-impact fertiliser and enhance adherence to the principles of proximity as well as self-sufficiency in waste treatment, in energy generation and in resource use. Financial viability is scrutinised investigating optimal logistic pre-conditions such as catchment area or plant size. Given that a breakthrough in deployment does not only depend on technical aspects, the relative importance and magnitude of the necessary incentives is discussed. The influence of policy instruments is studied by devising different incentive scenarios for the United Kingdom. Substantial and predictable rewards for renewable electricity and heat are essential to harness the full potential of AD in addition to the current emphasis on landfill tax. A possible configuration of energy supply companies as a crucial vehicle to bring anaerobic digestion to market is highlighted. (C) 2010 Elsevier Ltd. All rights reserved.