Solid fuel can be converted into a clean hot flue gas with a low content of volatile organic compounds (VOC's), NOx and dust, and clean ash with a low carbon content by means of a stage-divided thermal reactor, where the conversion process of the solid fuel is in separate vertical stages (from below and up): ash burn-out, char oxidation and gasification, pyrolysis, drying, and a gas combustion stage where gas from the gasifier is combusted.