The present invention relates to a process and system for gasifying biomass or other carbonaceous feedstocks in an indirectly heated gasifier and provides a method for the elimination of condensable organic materials (tars) from the resulting product gas with an integrated tar removal step. More specifically, this tar removal step utilizes the circulating heat carrier to crack the organics and produce additional product gas. As a benefit of the above process, and because the heat carrier circulates through alternating steam and oxidizing zones in the process, deactivation of the cracking reactions is eliminated.