A method and a system for drying a biomass, wet pulverized coal or combinations thereof, using heat from a Fischer-Tropsch synthesis in a heat exchanger to heat a nitrogen gas, using a flue gas in a heater to heat the heated nitrogen gas to a higher temperature, passing the twice heated nitrogen gas through apparatus to pulverize the fuel source of coal, biomass or both, forming a gas/particulate stream, filtering the gas/particulate stream in a filter to remove dried fuel feed stocks and using a blower to form a first steam and nitrogen mixture for discharge, and a second steam and nitrogen mixture for mixing with additional dry nitrogen gas for introduction to the first step of the method, at the heat exchanger.