An energy efficient method and apparatus for manufacturing a biodegradable, compostable, liquid-impermeable lined paper bag for containing wet (i.e. food) wastes by which all adhesives used in the process are cold glues applied without using heat and are applied through an extrusion and/or metering application means. Cellulose film is advantageously used for the paper liner and a dot matrix configuration of adhesive is applied between the cellulose and paper layers to laminate them together. The matrix-defined size of spacings between the points of application of adhesive on the cellulose film is such that both loss of the permeability of the cellulose film to water vapour and oxygen and creation of stress points on the cellulose film are minimized. A second cold glue is applied to the bag bottom section by a matrix of extrusion adhesive guns and programmable controller for activating the guns whereby the guns are activated according to a program of the controller for applying the second adhesive to pre-determined, programmable areas of the bag bottom section.