TECHNOLOGY FOCUS - CHEMICAL ENGINEERING - Preferred Components: The lipid component comprises free lipids and chemically bonded lipids. The sludge is biologically-treated sludge or biological treatment plant-derived sludge. The lipid component is obtained from wastewater stream, and the sludge is obtained from scum and primary sludge. The sludge also includes a component from wastewater solids obtained during primary treatment of the wastewater. The sludge component comprises sludge(s) consisting of float material settled sludge, screened material, grit, primary sludge, secondary sludge, biosolids, processed biosolids, composed biosolids, non-pyrolyzed biosolids, animal manure, or litter.Preferred Method: The primary method includes filtration, centrifugation, gravity separation, clarification, or drying beds. It also yields water, which is subsequently treated by contact with biomass or activated sludge to produce more sludge. The method further involves dewatering the sludge component to a solids content of 5% or greater. It further comprises applying in situ transesterification to the dewatered sludge component to produce biodiesel. It further comprises lipid enrichment step consisting of cooling the sludge component or starving the sludge component of nitrogen. The method further involves a sludge drying step, where the sludge comprises 30-100 wt.% solid (preferably 60-100%) to produce a dried sludge. The lipids are extracted from the dried sludge to produce a lipid extraction component and a sludge remnant component. The lipid extraction component is further processed to separate extracted lipids from extraction fluid. The further processing of lipid extraction component is by an extraction process using extractants consisting of chemical solvents, supercritical gases or liquids, hexane, acetone, liquid petroleum products, or primary alcohols. The method further comprises extracting proteins from the sludge remnant component to produce a protein component and a final sludge component. The further process is base-catalyzed transesterification, acid-catalyzed transesterification, hybrid process of base-catalyzed transesterification and acid-catalyzed transesterification, in situ transesterification, or enzyme catalysis. The method further involves providing additives to Class A or any beneficial-use sludge, the additives consisting of proteins, minerals, and/or vitamins.    TECHNOLOGY FOCUS - ORGANIC CHEMISTRY - Preferred Components: The extractant is liquid petroleum products consisting of diesel fuel, gasoline, bio-oils, or pyrolysis oils.