A novel drying system based on self-heat recuperation (SHR) technology, which recuperates both sensible and latent heat, was developed to reduce effectively the energy consumption for biomass drying. A fluidized bed dryer with internal heat exchangers was selected as the main dryer. Square wood chips of Pinus radiata with average dimensions of 10 mm were selected as biomass sample. The relation between the required energy input and fluidization velocity and a comparison with the available mechanical vapor recompression (MVR)-based drying technology were evaluated. The results prove that the proposed SHR technology could reduce the required energy consumption for biomass drying significantly at all evaluated fluidization velocities to about 2/3 of that required for MVR-based drying technology.