The most important modern task is to reduce of the energy costs. It can be achieved in two ways—either by radical modernization of existing equipment, or by using alternative cheap energy resources. Radical modernization will require significant financial costs. The search and use of alternative cheap energy resources currently seems to be more promising. It is possible to use sludge from domestic settling tanks as a low-grade fuel alternative to gas and coal. The use of them has a number of advantages: low cost, fairly large quantity accumulated in the filtration fields of wastewater treatment plants, as well as those generated continuously; releasing land occupied for waste, reducing the level of environmental pollution; the possibility of using the existing infrastructure of processing enterprises for the construction of industrial installations for processing sludge from domestic settling tanks. Direct combustion of sludge from domestic settling tanks as a solid fuel is associated with significant difficulties, therefore it is advisable to convert the sludge as a solid fuel into gaseous fuel at first. However, in order to gasify sludges, they must have a set of physical and mechanical properties and their preliminary preparation is required. The preparation like that is briquetting. The work presents a study of the moisture content of the original sludge, an analysis of the drying dynamics, their structural, compression and strength characteristics, and established the features and patterns of behavior during briquetting. Recommendations are given for carrying out the processes of drying and briquetting sludge from domestic settling tanks.