Raw iron ore has been investigated for use as a catalyst in direct liquefaction of peat into bio-crude by supercritical water treatment. The liquefaction treatments were conducted at temperatures from 350 degrees C to 500 degrees C for a residence time from 10 min to 4 h. The supercritical water treatment of peat with the iron ore generally resulted in 19-40 wt% yield of heavy oil (HO) that has a higher heating value (HHV) of 30-37 MJ/kg. An increase in the operating temperature generally increased gas yield and decreased oil and char yields, while a maximum HO formation was observed at around 400 degrees C. At 400 degrees C for a residence time of 2 h, the addition of the raw iron ore in the operation produced HO at a very high yield of about 40 wt%, nearly doubling that of the treatment without catalyst. An increase of water-to-peat ratio led to enhanced formation of HO products, accompanied by a decrease in gas or char yield. The optimal reaction time appeared to be 2 h for the maximum HO production, and a longer residence time than 2 h generally led to a decrease in HO yield but an increase in gas yield. Compared with the raw iron ore, its H(2)-reduced form and two synthesized iron-based catalysts (FeOOH and Fe(2)O(3)) all showed a lower activity for HO production. Some conventional biomass liquefaction catalysts (i.e., KOH, FeCl(3) and FeSO(4)) showed negligible or even negative effects on the HO yield, while these catalysts were found very active for promoting the gas yields and hydrogen formation. (C) 2010 Elsevier Ltd. All rights reserved.