Large quantity of activated sludge is generated from wastewater treatment but without yet an appropriate deposition. High temperature can lyse the activate sludge so that nitrogen and phosphorus containing nutrients are released. Halomonas CJN was found to grow on the heat lysed activated sludge and glucose for production of bioplastic poly-3-hydroxybutyrate (PHB) in the absence of yeast extract, nitrogen and phosphorus sources as well as trace elements. This reduces the PHB production cost significantly. Furthermore, acetic acid formed from anaerobic fermentation of heat lysed activated sludge can be used to replace glucose for cell growth but not much for PHB production. After construction of an additional PHB synthesis pathway in Halomonas CJN, we can produce PHB entirely from heat lysed activated sludge, reducing production cost of PHB roughly from ￥ 30 000 Yuan/ton to ￥ 20 000 Yuan/ton, thus turning waste activated sludge to valuable raw material resource.