In Australian raw sugar mills, bagasse is burnt as boiler fuel for steam generation. Typically there is a net surplus of bagasse and most mill boilers operate at reduced efficiencies to incinerate the excess bagasse and thereby reduce disposal problems. Currently there is no viable market for surplus bagasse although there are potential uses for this material. The studies described in this paper were carried out to determine the rate of moisture loss in baled bagasse covering a range of chemical and biochemical additives, including a simulation of the Bagatex-20 process.