Here is a new way to dewater and pyrolyze sludge without burning anything: mechanical pyrolysis in a shear retort. http://www.freepatentsonline.com/20120193271.pdf Feed goes in at the axis between counter-rotating coaxial disks, and pyrolyzed solids are extruded at the verge of the disks. Shear heating of the material boils the water and evolves the VOCs, which are axially extracted. Preferably the prime mover is wind, which although intermittent can be harnessed for driving mills. The grinding disks serve as energy storage (angular momentum) for wind that can't be connected to the grid.

Avoiding incineration avoids classification of your facility as an SSI, which would entail scrutiny by the Environmental Protection Agency. The authority of the EPA to punish emission of "any" air pollutant has recently been emphatically affirmed by the DC Court of Appeals. There are onerous new air pollution standards for SSIs See http://www.epa.gov/ttn/atw/129/ssi/ssipg.html