Municipal sludge treatment plant is the first plant of its kind in China, with franchised operation as a BOT project, operated by Dalian Dong Tai Organic Waste Treatment Co., Ltd., a 52% owned subsidiary of Dalian Dong Tai. Dalian Dong Tai Organic Waste Treatment Company is designed to engage in municipal sludge treatment for 20 years. It will have the processing capacity of 600 tons of sludge per day.

The project adopts the anaerobic fermentation as the core technology. The core treatment equipment is imported from Germany Lipp Company, Lipp anaerobic fermentation technology has been widely used in the other places around the world. The Plant will generate biogas 28,000 cubic meters per day, with biogas as primary product, and slurry, residue as side products. It also can reduce the release of CO2 by 100,000 tons per year. Natural gas (methane) can be generated after the biogas has been thoroughly processed. Slurry and biogas residue can be processed into high quality phosphate fertilizer, humus and landfill cover soil.

This project has been under construction since April 2007. And currently, trial production of the first 6 tanks has been completed while the 6 remaining ones are still in test phase and are expected to be put into full operation in the first quarter of 2010. Furthermore, a 12-km-long methane pipe network has been completed in October 2009, and the methane can be distributed through the network to end-users in Dalian by late December, 2009.