NOVELTY - Converting a biomass slurry comprising water and a biomass component to lower molecular weight oxygenated hydrocarbons, comprises: catalytically reacting the biomass slurry with hydrogen and a heterogeneous liquefaction catalyst at a liquefaction temperature and pressure to produce a product stream; separating the liquefaction catalyst and extractives to provide a liquid stream; washing the liquefaction catalyst; regenerating the liquefaction catalyst at a regenerating pressure and regenerating temperature; and reintroducing the liquefaction catalyst to the biomass slurry.    USE - The method is useful for converting a biomass slurry comprising water and a biomass component to lower molecular weight oxygenated hydrocarbons (claimed), to produce biofuels and chemicals.    DETAILED DESCRIPTION - Converting a biomass slurry comprising water and a biomass component to lower molecular weight oxygenated hydrocarbons, comprises: either (a) catalytically reacting the biomass slurry with hydrogen and a heterogeneous liquefaction catalyst at a liquefaction temperature and pressure to produce a product stream comprising the liquefaction catalyst, extractives and an aqueous solution comprising lower molecular weight oxygenated hydrocarbons, (b) separating the liquefaction catalyst and extractives from the product stream to provide a liquid stream comprising lower molecular weight oxygenated hydrocarbons, (c) washing the liquefaction catalyst in a washing medium, (d) regenerating the liquefaction catalyst in a regenerant gas at a regenerating pressure and regenerating temperature, where carbonaceous deposits are removed from the liquefaction catalyst, and (e) reintroducing the liquefaction catalyst to the biomass slurry; or catalytically reacting the biomass slurry with a biomass processing solvent comprising a C2+O1-3 hydrocarbon, hydrogen, and a heterogeneous liquefaction catalyst at a liquefaction temperature and a liquefaction pressure to produce a product stream comprising the liquefaction catalyst, extractives and an aqueous solution comprising lower molecular weight oxygenated hydrocarbons, where the biomass processing solvent is produced by catalytically reacting in the liquid or vapor phase an aqueous feedstock solution comprising water and a water-soluble oxygenated hydrocarbons comprising a C2+O1+ hydrocarbon with hydrogen in the presence of a deoxygenation catalyst at a deoxygenation temperature and deoxygenation pressure, and the steps (b)-(e) as above per se.    DESCRIPTION OF DRAWING(S) - The figure shows a flowchart for converting a biomass slurry.