A multifunctional wet waste processing system for electricity and clean water generation, comprising: a fuel dryer assembly having a fuel path with a fuel inlet configured to receive a flow of wet organic-based sludge comprising a mixture of water and solid fuel material, the fuel dryer assembly having a heater portion configured to boil the sludge and thermally separate water from the solid fuel material to provide dried fuel, the fuel dryer assembly having a first steam outlet, a dry fuel outlet, and a condenser portion having fluid path with a steam inlet and a fluid outlet, the fluid path being isolated from the fuel path; a fresh water condenser assembly coupled to the first steam outlet and configured to condense water vaporized from the sludge into clean liquid water; a dry fuel combustor assembly coupled to the dry fuel outlet of the fuel dryer assembly, the dry fuel combustor assembly having a combustor portion and having a boiler configured to receive heat from the combustor portion, the boiler having a first water inlet and a second steam outlet; a steam-powered generator coupled to the second steam outlet of the boiler and configured to generate electricity, the steam-powered generator having a third steam outlet coupled to the steam inlet of the condenser portion; and a water pump having a second water inlet coupled to the fluid outlet of the condenser portion of the fuel dryer assembly; and the water pump having a water outlet coupled to the first water inlet of the boiler; wherein the boiler is configured to convert a flow of water entering the boiler to a flow of steam to power the steam-powered generator, wherein the fresh water condenser assembly is configured to condense water evaporated from the sludge into clean liquid water; wherein the combustor assembly is configured to receive the dried fuel, the combustor assembly is configured to receive and burn the dried fuel material, and the boiler is configured to create steam in a fluid path extending between the water inlet and a second steam outlet; and wherein the steam powered generator is driven by the steam engine that is coupled to the second steam outlet of the boiler to receive steam therefrom; wherein heat from the steam exhausted from the steam engine boils the water in the sludge in the fuel dryer assembly; and wherein the steam exhausted from the steam engine is condensed to a flow of liquid water, characterized in that the fuel dryer assembly is a two-stage dryer having sequential first and second dryer stages (200, 220), wherein the first dryer stage generates sludge steam from the sludge, and the second dryer stage uses the sludge steam from the first dryer stage to dry the sludge. a fuel dryer assembly having a fuel path with a fuel inlet configured to receive a flow of wet organic-based sludge comprising a mixture of water and solid fuel material, the fuel dryer assembly having a heater portion configured to boil the sludge and thermally separate water from the solid fuel material to provide dried fuel, the fuel dryer assembly having a first steam outlet, a dry fuel outlet, and a condenser portion having fluid path with a steam inlet and a fluid outlet, the fluid path being isolated from the fuel path; a fresh water condenser assembly coupled to the first steam outlet and configured to condense water vaporized from the sludge into clean liquid water; a dry fuel combustor assembly coupled to the dry fuel outlet of the fuel dryer assembly, the dry fuel combustor assembly having a combustor portion and having a boiler configured to receive heat from the combustor portion, the boiler having a first water inlet and a second steam outlet; a steam-powered generator coupled to the second steam outlet of the boiler and configured to generate electricity, the steam-powered generator having a third steam outlet coupled to the steam inlet of the condenser portion; and a water pump having a second water inlet coupled to the fluid outlet of the condenser portion of the fuel dryer assembly; and the water pump having a water outlet coupled to the first water inlet of the boiler; wherein the boiler is configured to convert a flow of water entering the boiler to a flow of steam to power the steam-powered generator, wherein the fresh water condenser assembly is configured to condense water evaporated from the sludge into clean liquid water; wherein the combustor assembly is configured to receive the dried fuel, the combustor assembly is configured to receive and burn the dried fuel material, and the boiler is configured to create steam in a fluid path extending between the water inlet and a second steam outlet; and wherein the steam powered generator is driven by the steam engine that is coupled to the second steam outlet of the boiler to receive steam therefrom; wherein heat from the steam exhausted from the steam engine boils the water in the sludge in the fuel dryer assembly; and wherein the steam exhausted from the steam engine is condensed to a flow of liquid water, characterized in that the fuel dryer assembly is a two-stage dryer having sequential first and second dryer stages (200, 220), wherein the first dryer stage generates sludge steam from the sludge, and the second dryer stage uses the sludge steam from the first dryer stage to dry the sludge.