Waste heat air or heat exchange air enters the rotary dryer and directly exchanges heat and mass with wet sludge in the channel. It is equipped with a special crushing device (specially designed structure) to quickly evaporate the water in the sludge. The smaller sludge particles are discharged from the dryer and collected together with the gas through the outer channel, while the larger sludge particles stay in the dryer for a longer time until drying is completed. Part of the exhaust gas is extracted and treated by a deodorizer to meet atmospheric emission standards (or cooled by water foam dust removal) before being discharged into the atmosphere.