The chemical energy in sugar cane is roughly equally divided into three fractions:(1) juice, the liquid part; (2) bagasse, the fibrous part of stalks; and (3) straw, the leaves and tops of the cane. So far, only the juice has productive use as a raw material for sugar and alcohol production. In this chapter, it is shown that anaerobic digestion can be applied to generate energy from sub-products, reducing the environmental impact of distilleries. Fermentation of cane juice leads to the generation of wastewater called vinasse, which is spread on the cane fields, using its nutrients. If vinasse is submitted to anaerobic digestion before using the nutrients, the produced biogas can generate electric energy at a rate of 45 kWh·tc -1 for a conversion efficiency of 40%. Presently, bagasse is burnt at sugar mills and distilleries for the generation of electric energy with boilers and steam turbines producing a 100 kWh·tc -1 at the maximum conversion efficiency of 16%. However, the application of anaerobic digestion to bagasse may increase the energy production potential to 150 kWh·tc -1 . Another 150 kWh·tc -1 can be added to the distillery's energy output from cane straw that generally remains on the fields when cane is harvested by anaerobic digestion as well. Currently, the production rate of sugar cane in Brazil is about 720 million tc·y -1 with a production potential electric energy of 124 TWh·y -1 from vinasse and bagasse, compared to a consumption of about 500 TWh·y -1 . Hence, this represents 25% of the national consumption.