In this study, produced water (PW) was decontaminated using the coag-flocculation method, and generated sludge after treatment (GSAT) was transformed into methane-rich gas. The origin of the active coagulant was a novel extract from the green Terebralia palustris shell (TPS). The Terebralia palustris shell extract (TPSE) was created by processing the TPS using a modified Fernadez-Kim method into a protein-based active coagulant. To increase the output of bio-methane, the GSAT and cow dung (CD) were co-digested. Anaerobic digestion process kinetics were examined. The physicochemical characterization of TPS revealed the active component, which contains 16.67% protein. The optimal dosage, pH, and settling time for the coag-flocculation process were 2 g/L, pH 2, and 20 min, respectively, which produced the best turbidity removal efficiency of 94.2%. A total of 36 mL, 490 mL, and 641 mL of biogas were recovered from the anaerobic production of biogas, respectively. With a determination coefficient of 0.9291 for the GSAT and 0.9717 for the GSAT + CD, the anaerobic digestion kinetics followed exponential and logistic models, respectively. In conclusion, coagulation and anaerobic digestion were combined to effectively decontaminate PW and convert coagulation by-products into biogas.