<p>Method for producing solid fuel precursors comprising mixed metal carbides which can be formed into agglomerates for shipment or storage at (32). The agglomerates can be converted into gaseous or liquid fuels via reaction with water or steam. The precursors additionally may contain minor amounts of free metal, unreacted carbon or other impurities. The metal carbide containing fuel precursors are prepared in a series of steps including the reduction of metal containing raw materials with carbon in reactor (22) to form a carbon-saturated molten metal which saturated metal is subsequently mixed with excess coke or char to form metal carbides in vessels (26) and (28).</p>