Combustible waste material is collected and processed after which it is disposed of by incineration, the energy derived from combustion being utilized to produce electrical energy. Included in the processing of the waste material are the steps of shredding the waste material, feeding the shredded material through a high density press to separate the dry matter from the liquids, heating the shredded material to drive off additional moisture and gases, fluidizing and feeding the dried shredded material into the incinerator.