A drying system includes a fluidized bed dryer and fluidizing gas loop. The system is a closed loop so that fluidizing gas used to dry particulate matter can be reconditioned and recycled to fluidize and dry additional particulate matter. The fluidizing gas is reconditioned by removing fine particulates and water vapor. The drying system includes oxygen control features to prevent oxygen from entering the system. A method for drying particulate matter includes fluidizing the particulate matter in a dryer with a fluidizing gas, heating the particulate matter to remove water, removing water vapor and fluidizing gas from the dryer, removing fines and water vapor from the fluidizing gas, recirculating the fluidizing gas to the dryer to fluidize additional particulate matter and removing dried particulate matter from the dryer. A modular drying system reduces the amount of construction necessary at the installation site.