NOVELTY - An apparatus (100) for the torrefaction of cellulose containing material comprises a material processing chamber (110) adapted for torrefying water containing cellulose material passing through it; an outlet in communication with the chamber for exiting exhaust gas from within the chamber; a burner in communication with the exhaust gas for creating heated gas by combustion of at least a portion of the exhaust gas; and a heat exchanger (30) in communication with the heated gas.    USE - For the torrefaction of cellulose containing material (claimed) such as wood; and also useful for drying various materials in a torrefaction chamber.    ADVANTAGE - The apparatus having torrefaction chamber is multi-zoned to give very accurate drying and torrefaction of the wood chips as they progress down through the torrefaction chamber. The apparatus does not form a pyrochar. Torrefaction of the cellulosic products, and more specifically the removal of bound water and volatiles in the feedstock, are conducted in a closed, inert, system which allows capture of volatile materials so that the commercial value of the captured volatiles can be realized either by combustion to recover their caloric value or by recovery as a saleable by-product.    DETAILED DESCRIPTION - INDEPENDENT CLAIMS are included for the following:    (1) method for torrefying material involving heating material to be torrefied within a processing chamber to generate exhaust gas to be discharged from it; creating heated gas by combustion of at least a portion of the exhaust gas discharged from the processing chamber; heating at least a portion of the exhaust gas discharged from the processing chamber using the heated gas; and recycling at least a portion of the heated exhaust gas to the processing chamber; and    (2) torrefying water containing material involving cascading material to be torrefied through a material processing chamber having an upper portion and a lower portion; applying heat within the upper portion of the material processing chamber for drying the material and creating steam; creating volatile gas from heating the material in the lower portion of the material processing chamber; and torrefying the material within the lower portion of the material processing chamber in the presence of the steam.    DESCRIPTION OF DRAWING(S) - The figure shows front elevational view of an apparatus.    Feed port (10)    Exhaust port (20)    Heat exchanger (30)    Inlet (40,50,60)    Discharge port (70)    Apparatus (100)    Chamber (110)