The gamma-valero-lactone (GVL), a potential 'green' candidate for the production of liquid alkanes for transportation fuels, can be obtained by the hydrogenation of levulinic acid, a primary decomposition product of hexoses. On the search for the application of a bifunctional catalyst, we have identified that the versatile Shvo catalyst can be used to transfer the hydrogen required for the reduction of levulinic acid to GVL through a 2-hydroxy-pentanoic acid (2HP) intermediate. Density functional studies (DFT) have been employed here to compute the energetics for the conversion of levulinic acid to GVL. Additionally, we have investigated the potential application of an iron-based congener to replace the conventional Shvo catalyst due to its natural abundance and cost effectiveness. (C) 2012 Elsevier B. V. All rights reserved.