A bio-product such as biochar, bio-coal, bio-oil, coke, and/or activated carbon material is formed by processing a starting biomass material comprising water-laden material. The starting biomass material is heated to below or above an autoignition temperature through a rotary compression unit (RCU) by generating steam through releasing unbound and bound waters in the biomass thus forming a bio-product. The biomass material being processed may be, without limitation, a woody or non-woody biomass material, such as cellulosic material and/or grain. The process can also form bio-oil from pyrolysis vapors which can be processed to other bio-products.