The sewage sludge is produced in factories treating urban wastes. The present invention converts the sewage sludge into useful compost via an ecologically and economically acceptable process. The sewage sludge is pelletized by use of finely granulated stone or other inert binding material. The pelletazing method augments the permeability of heaps or layers whereon the palletized product is deposited so that composting may be facilitated. According to this method, the stirring of the layers is abolished, the process is rapid while lesser odours are produced than with the use of conventional composting methods. The partial addition of cement, lime, volatile ashes or gypsum gives cohesion to the sludge, reduces the odours, neutralizes the pathogenic organisms by augmentation of the PH and binds the potential heavy metals. The produced compost supplies organic material to infertile soils, substitutes expensive chemical fertilizers and saves energy. This method is working with ordinary mechanical equipment while d