A method is disclosed that produces allografts from matrices typically containing demineralized bone matrix (DBM) powder, demineralized bone matrix gel, demineralized bone matrix paste, bone cement, cancellous bone, or cortical bone and mixtures thereof. The matrices are sterilized utilizing supercritical CO2 in the presence of a sterilizing additive and an entrainer such as an alkaline earth metal compound, preferably CaCO3.