NOVELTY - Producing (M1) a pelletized fuel product involves: applying a first amount of water to at least partially carbonized biomass, where the first amount of water being effective to give the partially carbonized biomass a moisture content of 20-40 wt.%; applying a second amount of water to the partially carbonized biomass after applying the first amount of water, where the second amount of water being effective to bring a moisture content of the partially carbonized biomass to 40-60 wt.%; and then pelletizing the partially carbonized biomass in an inert atmosphere.    USE - For producing pelletized fuel product (claimed).    ADVANTAGE - The first amount of water is effective to give the partially carbonized biomass with a moisture content of 22-32 wt.%. The first amount of water is effective to penetrate pores of the partially carbonized biomass. The second amount of water is effective to bring a moisture content of the partially carbonized biomass to 45-55 wt.%. The method provides renewable energy source and eco-friendly alternative to coal and other fossil fuels. The method produces pelletized, carbonized biomass-based fuel products. The method provides lower pelletization temperatures combined with an inert environment yield less spontaneous and unintentional combustion reactions during pelletization and result in an improvement in machine uptime and yield. This limits the amount of syngas produced during the pelletization process and offers the user an opportunity to operate an array of pelletization equipment in the absence of increased syngas hazards. The second amount of water operates to reduce the temperature of the pelletizing chamber. This increases productivity of the pelletizer and reduces friction within the pelletizing chamber (e.g. by reducing friction of the pelletizing dies). The second amount of water also reduces dust and the loss of carbonized material from escaping dust.    DETAILED DESCRIPTION - An INDEPENDENT CLAIM is included for an apparatus for producing a pelletized fuel product comprising: a feeder of at least partially carbonized biomass; first water source configured to moisten the at least partially carbonized biomass to a moisture content of 20-40 wt.%; second water source configured to bring a moisture content of the partially carbonized biomass to 40-60 wt.%; pelletizer configured to receive and pelletize the partially carbonized biomass; and inert gas source configured to provide inert gas to the pelletizer.