Improved, fuel-efficient systems are provided for the processing of biomass, such as wood or crop residues, food waste or animal waste in order to selectively obtain torrefied and/or carbonized final products. In general, the processes involve thermally drying incoming biomass using a dryer employing the hot gas output of a fuel-operated burner. Next, the dried product is torrefied in an indirect torrefaction reactor so as to evolve light volatile organic compounds which are used as a gaseous fuel source for the burner. The torrefied product can be recovered, or some or all of the torrefied product may be directed to a carbonization reactor coupled with a reactor burner. Carbonization serves to remove most of the remaining VOCs which are used as a gaseous fuel input to the dryer. In certain instances, portions of the dried biomass are directed to the burners, as an additional source of fuel.