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A fluid bed dryer comprising a drying chamber and a heating jacket contiguous with a drying chamber. The drying chamber and the heating jacket are each adapted to contain a bed of fluidizable particulate heat transfer material and each has a fluidizing gas inlet and an exhaust gas outlet. The drying chamber also has a feed inlet and a feed outlet. The fluid bed dryer may be used in a heat exchange system in combination with means for conveying a slurry comprising liquid and combustible waste solids to the feed inlet of the drying chamber of the fluid bed dryer; a reactor having a feed inlet, a reaction section, and a vapor exhaust port; conveyor means for transferring solids from the feed outlet of the drying chamber to the feed inlet of the reactor; conduit means connecting the vapor exhaust port of the reactor to the fluidizing gas inlet of the heating jacket of the dryer; and means for providing fluidizing gas to the fluidizing gas inlet of the drying chamber.