TECHNOLOGY FOCUS - INORGANIC CHEMISTRY - Preferred Components: The catalyst comprises a metal catalyst and a metal oxide catalyst. The metal oxide catalyst is copper oxide, chromium oxide and ruthenium oxide. The metal catalyst is non-supported metal catalyst, supported metal catalyst, copper, ruthenium, rhodium, palladium, platinum, gold, silver, iron, cobalt, lanthanum, iridium and/or nickel. The non-supported metal catalyst is selected from nano catalyst solution, Raney nickel and Raney copper. The supported metal catalyst is selected from activated carbon, silica, alumina, amorphous silica alumina, titanium oxide, zirconium oxide, zinc oxide, magnesium oxide, cerium oxide and zeolite. Preferred Composition: The concentration of the metal on carrier is 0.001-80 wt.%.    TECHNOLOGY FOCUS - ORGANIC CHEMISTRY - Preferred Components: The crude biological oil comprises cracking bio-oil, high pressure liquefied bio-oil or bio-oil derived from extraction liquid. The lignin is alkali lignin, enzyme lignin, organosolv lignin (such as acetone lignin) or milled wood lignin, extracted lignin, wood flour, meal or straw lignin-rich natural biological substance. The hydrocarbon fuel is hydrocarbon having 5-9C, diesel oil and hydrocarbon mixture having 12-20C. Preferred Method: The extraction liquid is obtained by performing extraction utilizing extractant selected from cyclohexane, dichloromethane, chloroform, toluene, benzene, ether, ethyl acetate, petroleum ether or other hydrocarbon. The crude biological oil is converted into reaction system water under condition of solvent, water, ionic liquids, supercritical carbon dioxide, methanol, ethanol, perfluoro solvent, acetone and hydrocarbon solvent. The pH of the reaction system is adjusted using acid selected sulfuric acid, phosphoric acid, hydrochloric acid, acetic acid and other liquid acid, and alkali, molecular sieve, alumina and other solid acid. The alkali is dissolved in liquid alkali selected from water-insoluble solid alkali, magnesium oxide, hydroxide oxide and water.