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A biorefining method of processing a lignocellulosic biomass to separate lignin and hemicellulose from cellulose includes the steps of (a) reacting the biomass in an aqueous slurry having a pH less than 7, comprising a transition metal catalyst, hydrogen peroxide; and (b)
separating a solid cellulose fraction from dissolved lignin and hemicellulose fractions. The method may also be used to treat cellulose and produce microcrystalline or nanocrystalline cellulose. The transition metal catalyst may be a nanoparticulate catalyst including multivalent iron, iron oxides and iron hydroxides. The nanoparticulate catalyst may be formed by oxidizing a highly reduced solution of iron, such as groundwater that has not been exposed to oxygen.