Methane is produced when the organic part of garbage is biodegrading. Unfortunately unless you seal the entire garbage dumpsite, more methane will escape into the atmosphere than is recovered as fuel.
There is two problems with going bigger scale on this.a few small farms also routinely collect animal poo and extract the methane. Haven't seen anything more large scale than that though. Ewan ko lang if time will come na magiging profitable to transport truckloads of poo as fuel.
One is the smell.
Second is safety. Larger scale would mean larger bio-reactors to convert poo into methane. Any small leak of air and it might a combustion and a major explosion.





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