Designed to recycle nitrogen to increase the amount of nitrogen in the process air to 85 percent to render combustion impossible, the fluid-bed drying system has an integral baghouse dust collector set directly above the fluid-bed drying zone to create a sealed system. Condensing the moisture removed with a chilled water coil, this approach allows the nitrogen to be recycled while safely containing the fine powders entrained in the airstream and separating them from the process gas. Recycling the nitrogen also reduces the amount of gas needed versus exhausting the moisture-laden gas. The drying system was developed to promote worker safety and aid compliance with NFPA 654, Standard for the Prevention of Fire and Dust Explosions from the Manufacturing, Processing, and Handling of Combustible Particulate Solids. It can be used to dry bentonite clay, pesticides and herbicides, powdered plastic resin and other chemical, food and pharmaceutical products that generate combustible particulates less than 200 µm.