The present invention is directed to a method for producing products such as fuel pellets from lignocellulosic biomass. Lignocellulosic biomass having a moisture content of less than about 30% by weight is introduced into a reactor. A vacuum of less than about 500 torr is applied to the reactor. Steam having a temperature of between about 180�C and about 235�C is injected into the reactor. The biomass is maintained in the reactor between about 1 and about 12 minutes. The treated biomass having a moisture content less than about 30% by weight is removed from the reactor. Treated biomass is formed into a pellet.