The present invention comprises an improved method for refining cellulose that produces a highly refined cellulosic material. The method comprises soaking raw material in a mild NaOH using reduced temperatures and pressures, and refining the material with a plate refiner so that a waste water stream is reduced in volume and has a pH within a range of 8 to 9. The present invention also comprises a HRC gel having a lignin concentration of at least about one (1)% by weight, and a water retention capacity of about 25 to at least about 56 g H.sub.2O/g dry HRC.