The Ocean County Utilities Authority (OCUA) is proceeding with construction of an innovative project to meet regulatory requirements. The project includes facilities to produce a dry, granulated sludge product that will be marketed to the commercial agricultural fertilizer industry. One of the unique features of this project is the compaction and granulation of dried sludge powder to produce particles of an acceptable size for use in fertilizer. The compaction and granulation process is the primary focus of this paper, although a brief summary of the overall OCUA project is presented first.