We propose a novel method for preparing iron-dispersed carbonaceous materials by utilizing low-grade materials and waste heat. Iron is loaded into the biomass through stirring it in a solution of FeCl2 for 2 h and then pyrolyzed at 600-900 degrees C to prepare materials composed of iron and carbon. Further in order to investigate the reactivity of the sample, steam and CO2 gasifications of the material was performed at 800-900 degrees C. Approximately 80% of the carbon in the biomass remained in the solid state during pyrolysis at 600 degrees C because of the effect of FeCl2 in promoting the carbonization of the biomass. The prepared material displayed high reactivity during gasification due to the catalytic effect of loaded iron. This result indicated the possibility that the composite may be used as an iron and heat source for a steel converter. Furthermore, the high reactivity of the composite during steam gasification suggests its usefulness as a medium for hydrogen or carbon monoxide production. (C) 2007 Elsevier Ltd. All rights reserved.