NOVELTY - Producing bio-oil and processing byproducts of bio-oil production involves pyrolyzing biomass in conversion reactor (14) in presence of catalyst to produce reactor effluent (15) comprising bio-oil, carbon monoxide (CO), and methane, where the weight ratio of CO to bio-oil is 0.5:1, and methane to bio-oil is 0.05:1; condensing and separating substantial portion of bio-oil from reactor effluent; and generating hydrogen by reacting water with a portion of CO and/or methane, thus producing a hydrogen-enriched stream (46) comprising generated hydrogen.    USE - For producing bio-oil and processing byproducts of bio-oil production (claimed).    ADVANTAGE - The process produces and upgrades bio-oil into renewable fuels and/or fuel additives without requiring any external hydrogen sources, in the process the methane and/or CO is used to generate hydrogen which is used for hydrotreating the bio-oil. Additionally, or alternatively, a syngas stream, a carbon dioxide-rich stream, and/or a methane-rich stream can be recovered for use in the bio-oil production process and/or for use in a conventional petroleum refinery and/or petrochemical plant.    DETAILED DESCRIPTION - Producing bio-oil and processing byproducts of bio-oil production involves pyrolyzing biomass in a conversion reactor (14) in the presence of a catalyst to thereby produce a reactor effluent (15) comprising bio-oil, carbon monoxide (CO), and methane, where the weight ratio of CO to bio-oil in reactor effluent is 0.5:1, and of methane to bio-oil is 0.05:1; condensing and separating a substantial portion of bio-oil from reactor effluent, thus leaving an uncondensed stream comprising a portion of methane and CO; and generating hydrogen by reacting water with a portion of CO and/or methane, thus producing a hydrogen-enriched stream (46) comprising generated hydrogen, where process produces generated hydrogen at a rate that is at least 0.5 percent of the rate of introduction of biomass into conversion reactor on a weight basis. An INDEPENDENT CLAIM is included for a system for producing bio-oil comprising a biomass feedstock source for providing solid particulate biomass; a conversion reactor for thermally converting at least a portion of solid particulate biomass feedstock into a reactor effluent comprising bio-oil, carbon monoxide (CO), olefins, and methane; a partial condenser (24) for partially condensing at least a portion of reactor effluent into a bio-oil stream and an uncondensed stream; an olefin removal unit for removing olefins from uncondensed stream thereby providing an olefin-depleted stream (34); a hydrogen generation unit having a water inlet, where hydrogen generation unit is operable to generate hydrogen by reacting water with CO and/or methane from olefin-depleted stream; and a hydrotreater (40) for reacting at least a portion of bio-oil stream (26) with at least a portion of the generated hydrogen from hydrogen generation unit.    DESCRIPTION OF DRAWING(S) - The figure shows a schematic diagram of a biomass conversion system.    Hydrogen generation system (10)    Conversion reactor (14)    Reactor effluent (15)    Partial condenser (24)    Bio-oil stream (26)    Uncondensed gas stream (28)    Olefin removal system (30)    Olefin-depleted stream (34)    Hydrotreater (40)    Hydrogen-enriched stream (46)