The USLTRCD is working in partnership with the US Department of Energy to develop a sludge management and biofuels production process suitable for small communities. 

Communities across the country are dealing with new challenges and opportunities related to handling wastewater sludge. This sludge can be turned into biofuels using methods like anaerobic digestion, pyrolysis, or hydrothermal liquefaction. However, there are risks to the environment and public health from contaminants such as "forever chemicals" (like PFAS), microplastics, and other leftovers. These issues are becoming more recognized, increasing the regulatory and liability risks of using biosolids (treated sludge) in farming and landscaping. Additionally, landfilling sludge is becoming more restricted.

High-temperature processes to produce biofuels can help solve the sludge disposal problem and reduce greenhouse gas emissions. Hydrothermal liquefaction (HTL), which involves "pressure cooking" at over 500 degrees Fahrenheit, can destroy harmful organic contaminants in the sludge while creating a valuable fuel. This fuel can be processed in local refineries into renewable diesel and sustainable aviation fuels.

At the end of the project, the best thermal process technology will be identified. Additionally, best locations for sludge processing will be idetified with consideration to community input, environmental justice, and technical feasibility. This will be done through a planning committee that includes community members and experts in technology, social, and economic issues. Local communities will benefit from a better environment and public health, along with economic advantages from local renewable fuel production, reduced greenhouse gases, and lower wastewater treatment costs.