Drying of digested sewage sludge, as an important alternative to sludge disposal at dumping sites, should comply with the requirements of high energy efficiency as well as economic feasibility. The technical and economic optimization analysis of installing a waste process heat recovery unit in a medium temperature belt dryer operated in a municipal waste water treatment plant was carried out. Inlet capacity of the plant is 1.83 Mg of wet sludge per hour. The post-process air was indicated as a source of waste heat and the configuration of a heat recovery system was proposed. The main objective of the research was to find the optimal size of a chosen type of waste heat recovery heat exchanger for preheating ambient air to the process. The maximization of Net Present Value, and, alternatively, also Net Present Value Ratio were selected for the objective function of the optimization procedure. Simulation of yearly operation of waste heat exchanger was made for a range of different heat exchanging areas (101-270 m(2)) regarding given parameters of a post-process air and different temperatures of ambient air. Energy performance of the modernization was evaluated and economic indices were calculated for each of the analyzed cases. The location of the maximum of optimization function was found and the calculations show higher profitability of the cases with larger waste heat exchanger. It can be concluded that the location of optimum of the objective function is very sensitive to the price of natural gas supplied to the system and less sensitive to the electricity price. (C) 2016 Elsevier Ltd. All rights reserved.