Dried ground biomass samples, being heated for 20 min in anhydrous glycerin in the presence of Na2CO3 or KOH, have been converted completely into water insoluble and soluble chemicals. The most important variables appear to be temperature, amount of alkali and the nominal reaction time among the reaction parameters. The yield of total water insolubles is 68.4% from the beach wood in the presence of sodium carbonate. At these conditions, the yield of gaseous products is almost negligible. The acetone solubles from acidification of the liquefaction products was called biofuel in this study. The solubility of the biofuel in gasoline was tested as 1.96% by weight. When 10% ethanol is added to gasoline, the octane number increased by 8%. The C-3, C-4 and C-5 iso- and n-alcohols were found to be the most effective blending agents in reducing the phase separation temperature.