Biogas reactor 1 comprising a housing 7 with an inlet 2 for organic material, a biogas outlet 3, a shaft 5 having a material displacement device 6 fixed thereto wherein the biogas reactor 1 has at least two outlets 12, 13 in a gas producing section 10 of the reactor 1 from which organic material can be returned to the inlet 2. A method using the biogas reactor 1 for production of biogas is also disclosed.