TECHNOLOGY FOCUS - ORGANIC CHEMISTRY - Preferred Process: The recirculating solvent medium serves as a hydrogen donor in step (c). The waste is dried to reduce the water content to below 12%. The step (e) is carried out at 350 degrees C, by mixing water steam and inert gas. The fuel gas from step (d), the solid char from step (e) and heavy oil from step (g) are combined and employed as a combustion source in heat energy generation, where the energy is utilized in the process. Preferred Components: The recirculating solvent medium is in itself a liquid product with a boiling point of above 350 degrees C. The ratio of solvent to sewage sludge feed is 0.75:1-1.5:1, preferably 1:1. EXAMPLE - Sewage sludge was oven dried at 105 degrees C to 100% solids, ground to a particle size of less then 0.75 mm for batch-scale experiments and of less then 0.25 mm for continuous operating tests, mixed with solvent in an appropriate ratio, and the mixture was immediately used in experiment. The dried comminuted sludge was mixed with suitable solvent and placed into slurry preparation vessel to obtain slurry. After the slurry was stabilized by heating, stirring and recirculating, it was pumped by the feed pump into reactor. In the reactor, the sewage sludge was converted into a mixture of slurry product and gases produced in the process. From the reactor, the mixture went to separator vessel, where it was cooled and vapor were condensed. The uncondensed gas was released through the cold traps where the remaining liquids were trapped, then it was passed through the gasometer and was thrown to vent. The slurry product collected in the separator vessel was vacuum-distilled, which was carried out in a laboratory unit and the liquid products having the boiling point of less than or equal to 250 degrees C were separated. The residual slurry product was placed into the column of the steam stripping apparatus for liquid/solid separation. Slurry product-2a (200 grain), obtained after thermal extraction stage and vacuum distillation of water and fractions at more than 250 degrees C was placed into the steam stripping apparatus. Content of liquid product was 76.2 wt.% and solid residue was 23.8 wt.%. A liquid/solid separation was carried out at 350 degrees C. The thermal extraction stage proceeded in optimal conditions of 350 degrees C, 10 atmosphere and residence time of 15 minutes. The stage at which the slurry product was vacuum-distilled took place in 10 mm mercury vacuum. The stage of the solid/liquid separation of the remaining slurry-product was performed by steam stripping apparatus at 350 degrees C to give oil (73.82 wt.%).