This paper presents an inclusive approach with focus on energy use and recovery in wastewater management, including wastewater treatment (WWT) and sludge handling. Process data from three Swedish mills and a mathematical model were used to evaluate seven sludge handling strategies. The results indicate that excess energy use in WWT processes counters the potential energy recovery in the sludge handling systems. Energy use in WWT processes is recommended to aim for sufficient effluent treatment, not for sludge reduction. Increased secondary sludge production is favourable from an energy point of view provided it is used as a substrate for heat, biogas or electricity production. (C) 2009 Elsevier Ltd. All rights reserved.