NOVELTY - Producing (p1) fuel pellets involves: introducing a lignocellulosic biomass having a moisture content of less than 30 wt.% into a reactor; applying a vacuum to the reactor; injecting steam having a temperature of 180-235 degrees C into the reactor; maintaining the biomass in the reactor for 1-12 minutes; and removing the treated biomass from the reactor.    USE - For producing fuel pellets used as a fuel source (claimed).    ADVANTAGE - The fuel pellets have unique compositions and considerably better properties, exceptionally high strength and bulk density and very low water absorption than those made by state-of-the-art steam explosion processes. They are also cheaper to manufacture. The method makes it possible to convert any known lignocellulosic biomass into fiber masses or treated biomass suitable for the manufacture of products and extruded products. Fuel pellets have much lower water contents than coal, even after extended outdoor storage, and offer a number of practical advantages as a power station fuel compared to coal and other fossil fuels used in power generation such as coke derived from petroleum (petcoke) or coal. The fuel gas produced by combustion of these pellets is much cleaner than that from coal, coke and heavy fuel oil, and is practically free of sulfuric and toxic elements such as arsenic, mercury, or vanadium. This means that it does not need to be desulfurized before released to the environment, a process that typically adds greater than or equal to 10% to the cost of generating electrical power from fossil fuels as well as creating a product, often regarded as toxic waste, which needs to be dumped accordingly. The flue gas produced by their combustion is, unlike that from coal, totally free of arsenic, which poisons catalysts that are used to reduce nitric oxide (NO) levels in power station flue gases. Thus, the combustion of biomass pellets made by the method leads to a more reliable removal of nitrogen oxide (NOx) than if coal were to be used. The use of venting in a compounding extruder during extrusion allows odorous volatiles such as furfurals and organic acids that can be produced during steam treatment and extrusion, to be removed prior to the product formed. These odorous components are most undesirable in products such as construction boards and moldings. The act of evacuating the reactor with a vacuum before the introduction of steam allows the steam and any added catalyst to penetrate more fully the internal structure of the biomass, which makes the energy intensive, size reduction pretreatments used in other techniques, used to convert biomass to fuel pellets, such as grinding or hammer-milling, unnecessary. In addition, the use of vacuum, optionally together with slightly superheated steam, allows the product to be pelletized immediately after steam treatment without the need for an intermediate drying step. This is one advantage as the steam-treated materials are difficult and expensive to dry to a level optimal for pelletizing (less than 7%). None of the prior art can meet this requirement without drying. Fuel pellets contain biomass that has become embrittled. They are thus easier to grind than white pellets. Compared to the white pellets available in the market, they have much lower moisture contents and therefore, a higher energy content per unit weight and a far lower water absorption. They are also resistant to impact and are, therefore, dust-free.    DETAILED DESCRIPTION - An INDEPENDENT CLAIM is included for a pellet prepared by a process (p1).