Here is yet another research effort to derive energy from waste. Josh Harkinson lists six innovative ideas to convert waste into electricity. It includes Poop-Eating Bacteria, Turd Cell Smashers, Geological Toilets, Feces Ponds, Gassifiers and Poop Pyrotechnics.
He has also mentioned "feces pond" as cheaper green option. He also mentioned that 20 countries have installed versions of UC Berkeley professor William J. Oswald's Advanced Integrated Wastewater Pond Systems Technology which use both algae and bacteria to treat the waste. I think this will be a fantastic idea of treating the waste water as well as producing energy.
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