A treatment system for generating electricity by combusting biofuel produced from dewatered sludge, the system comprising: a turbine; a dryer operable to: receive a drying gas; receive sludge; and reduce the moisture content of the sludge in the presence of the drying gas, wherein the drying gas absorbs at least a portion of the moisture content of the sludge and forms a biofuel, reduced moisture powder, and at least partially saturated gas; a boiler system comprising a dual fuel burner and a primary air supply inlet, said boiler operable to combust the biofuel to produce at least one of heat for use in the dryer or steam for the turbine; a first separator located downstream of the dryer operable to separate the biofuel from the at least partially saturated gas; a first condenser located downstream of the separator operable to reduce a moisture content of the at least partially saturated gas by reducing a temperature of the at least partially saturated gas to form a reduced-moisture gas; at least one fan located downstream of the condenser operable to direct the reduced-moisture gas to a heat exchanger to form the drying gas, the heat exchanger disposed in the boiler system and to direct the reduced-moisture gas to the dryer to reduce the moisture content of the sludge; a diverter valve located downstream of the fan operable to keep an overall system moisture balance by removing the volume of reduced-moisture gas out of the system that is equivalent to the volume of moisture removed from the sludge less the amount removed by first condenser; a gas-water heat exchanger located downstream of the diverter valve for cooling the reduced-moisture gas diverted out by the diverter valve by using process water from an ambient-temperature water source and a condenser located downstream of the gas-water heat exchanger for condensing out a volume of moisture equal to the moisture contained in the sludge less the amount removed by the first condenser from the diverted reduced-moisture gas volume, to form a reduced temperature diverted portion of cleaned drying gas; said boiler system comprising the primary air supply inlet operable to receive the reduced temperature diverted portion of cleaned drying gas as combustion air being combusted with the biofuel utilizing the dual fuel burner; a make-up air supply located downstream of the fan to replace reduced-moisture gas diverted out of the system; and a series of heat exchangers (12, 35) incorporated into the boiler system to transfer heat to at least one of the turbine and dryer. receive a drying gas; receive sludge; and reduce the moisture content of the sludge in the presence of the drying gas, wherein the drying gas absorbs at least a portion of the moisture content of the sludge and forms a biofuel, reduced moisture powder, and at least partially saturated gas; a boiler system comprising a dual fuel burner and a primary air supply inlet, said boiler operable to combust the biofuel to produce at least one of heat for use in the dryer or steam for the turbine; a first separator located downstream of the dryer operable to separate the biofuel from the at least partially saturated gas; a first condenser located downstream of the separator operable to reduce a moisture content of the at least partially saturated gas by reducing a temperature of the at least partially saturated gas to form a reduced-moisture gas; at least one fan located downstream of the condenser operable to direct the reduced-moisture gas to a heat exchanger to form the drying gas, the heat exchanger disposed in the boiler system and to direct the reduced-moisture gas to the dryer to reduce the moisture content of the sludge; a diverter valve located downstream of the fan operable to keep an overall system moisture balance by removing the volume of reduced-moisture gas out of the system that is equivalent to the volume of moisture removed from the sludge less the amount removed by first condenser; a gas-water heat exchanger located downstream of the diverter valve for cooling the reduced-moisture gas diverted out by the diverter valve by using process water from an ambient-temperature water source and a condenser located downstream of the gas-water heat exchanger for condensing out a volume of moisture equal to the moisture contained in the sludge less the amount removed by the first condenser from the diverted reduced-moisture gas volume, to form a reduced temperature diverted portion of cleaned drying gas; said boiler system comprising the primary air supply inlet operable to receive the reduced temperature diverted portion of cleaned drying gas as combustion air being combusted with the biofuel utilizing the dual fuel burner; a make-up air supply located downstream of the fan to replace reduced-moisture gas diverted out of the system; and a series of heat exchangers (12, 35) incorporated into the boiler system to transfer heat to at least one of the turbine and dryer.