The San Francisco garbage hauling company "Norcal Waste" will collect dog waste in biodegradable bags and put them in a "methane digester". The bacteria contained in the digester will create even more methane gas that will be used to power gas stoves, heaters, and turbines.
As long as it's cost effective it sounds like a great idea.
Methane Digester:
http://www.tdn.com/articles/2006/02/22/nation_world/news08.txt
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