Pyrolysis and steam gasification processes for biomass conversion has proved to be economical in the production of chemicals, fuels, and polymers. The biomass pyrolysis oils are dark brown viscous liquids. The biomass gasification process is similar to processes used for many years by chemical and petrochemical manufacturers, including methanol, ammonia and ethylene producers. Bio-oils prepared by liquefaction of wood comprised a complex mixture of volatile organic acids, alcohols, aldehydes, ethers, esters, ketones, furans, phenols, hydrocarbons, and nonvolatile components. The oil yield was higher with the catalytic aqueous liquefaction than with the non-catalytic aqueous liquefaction.