Biogas produced from a North Carolina State University (NCSU) poultry waste digester system was evaluated for in situ utilization. A hot-water dryer (HWD) consisting of a biogas water heater, an aluminum drying bed, and a circulation pump was designed, constructed, and tested for drying the sludge collected from the digester. It was found that the system has a 55% overall efficiency. The drying productivity increased linearly as the circulating water temperatures increased. The solid product generated this way could be used as feed supplement or fertilizer. Three types of commercial animal brooders originally fueled by propane or natural gas were mechanically modified to burn biogas as fuel. They were initially tested for sludge drying, but heating efficiencies were found to be low, 13–30%. In use as regular animal brooders, stable combustion of biogas and comfortable floor temperatures can be maintained with proper mechanical adjustments. The use of biogas for brooding young chicks on a poultry farm can significantly reduce the natural gas or propane fuel cost. The results of these studies offer alternative utilizations of biogas energy in addition to electricity generation. The drying of sludge can recover a valuable solid by-product, while presenting an animal farm free of waste.