Carbonaceous materials are thermally upgraded in a pressurized steam
environment to remove moisture and other byproducts. A variety of
water/solid separation devices may be employed in a process vessel to
maximize moisture removal from the upgraded charge. Heating media inlet
nozzles and process chamber vents are strategically positioned at the
process vessel wall to minimize short circuiting of heating media to
vessel outlet vents and to continuously separate hot water removed from
the charge and condensed steam, such that the upgraded material removed
from the process vessel is not discharged with accompanying free
moisture. After upgrading, the charge may be rehydrated to improve its
stability during shipping and storage.