Background Sludge from sewage plants is potentially hazardous. It is currently deposited, incinerated or used as fertiliser. However, conventional incineration of wet sludge is mainly a method of decreasing the volume of sludge, and could generate other environmental problems. Another problem with incineration is that it doesn’t allow recovery of nutritional content in the sludge, and offers only limited recovery of energy. The impact of sludge as a fertiliser has not been fully investigated. Cadmium levels are generally high in sewage sludge and, as a result, also in agricultural soil in some parts of Europe. As well as spreading heavy metal, using sludge as a fertiliser releases infectious pathogens and complex organic substances into the environment. Objectives The project planned to demonstrate a new sludge processing concept that involves drying and hygienically treating the sludge. In this way, the technique enables energy and phosphorous content to be recovered and heavy metals to be removed. It is also adaptable to different sizes of treatment plants and different sludge compositions. The methodology was to be evaluated and disseminated throughout Europe, making a contribution to the attaining of waste management policy objectives. Results The project terminated after one of the partners withdrew. The beneficiary was unable to replace this partner with another one able to provide the project with a test platform, a municipal sewage treatment plant with suitable sludge processing and logistics.