It is demonstrated that dispersed biomass residues (bagasse, sawdust) can be processed into hard carbonaceous blocks, panels or boards with good strength and thermodynamic properties. There are two possible approaches: to mould dispersed biomass charcoal with a phenol-formaldehyde binder or to produce this material by carbonising the biomass fiberboard prepared by making use of steam explosion autohydrolysis pulp or steam explosion lignin as a binder. In the first step, steam explosion lignin, as a modifier and a binder is introduced to the lignocellulosic biomass by impregnation or during the hot pressing process to form a hard fiberboard. By subsequent carbonisation of the fiberboard panels or blocks, carbonised panels or blocks with high bending and crushing strength and suitable thermodynamic properties are obtained due to the formation of an internal lignin reinforcement in cell lumina and impregnation of cell walls with lignin solution or molten lignin. The carbonised panels demonstrate a good dimensional stability after a standard treatment with water. The bending strength of the carbonised panels after 24 h soaking in water is 93% of that in dry state. The thermodynamic properties and porosity of the carbonised panels demonstrate their suitability for use as a building material. Lignin, a natural binder of fiberboards, has proven to be suitable for preparation of cabonaceous panels and boards. In this respect new carbon building blocks and panels from moulded biomass and carbonised steam exploded biomass act as a concentrated form of long term carbon storage and will be a factor stabilizing the growing CO2 concentration in the atmosphere. [Proceedings of the First Workshop of QITS, Materials Life-Cycle and Environmentally Sustainable Development, March 2-4, Campinas, UNU/IAS San Paulo, Brazil, 1998, pp. 95-101; Proceedings of the Workshop in "Targeting Zero Emissions for the Utilization of Renewable Resources", ANESC, Tokyo, 1999, pp. 2-11.] (C) 2003 Elsevier Ltd. All rights reserved.