NOVELTY - The method comprises contacting a biomass feed with water in a presence of hydroprocessing catalyst particles and reducing gas under effective hydrothermal processing conditions to produce a multiphase product, separating the multi-phase product to produce a gas phase portion, a liquid hydrocarbon product, an aqueous portion and a solid portion, separating the liquid hydrocarbon product from the multiphase product to produce a fraction having 90 wt.% of its boiling range of 193-360 degrees C, and hydroprocessing a portion of the liquid hydrocarbon product in the presence of the catalyst.    USE - The method is useful for hydrothermally processing biomass such as algae or water hyacinth to produce hydrocarbon products such as distillate fuel.    ADVANTAGE - The method is capable of rapidly, conveniently, economically and hydrothermally processing the biomass with high efficiency.    DETAILED DESCRIPTION - The method comprises contacting a biomass feed with water in a presence of hydroprocessing catalyst particles and reducing gas under effective hydrothermal processing conditions to produce a multiphase product, separating the multi-phase product to produce a gas phase portion, a liquid hydrocarbon product, an aqueous portion and a solid portion, separating the liquid hydrocarbon product from the multiphase product to produce a fraction having 90 wt.% of its boiling range of 193-360 degrees C, and hydroprocessing a portion of the liquid hydrocarbon product in the presence of the hydroprocessing catalyst. The catalyst particles comprise a metal component disposed on a catalyst support. The effective hydrothermal processing conditions comprise a temperature of 150-500 degrees C, a pressure of 4.5-300 bar, a partial pressure of reducing gas of 2 bar. The reducing gas comprises hydrogen. The step of separating the multiphase product to produce a solids portion comprises separating the multi-phase product to produce a catalyst portion and a biomass-based solids portion. The step of contacting the biomass feed with water under effective hydrothermal processing conditions does not result in a phase change for the water. The biomass feed and the water are introduced into the reactor as a mixture of biomass and water. A weight ratio of water and biomass is 3:1 to 5:1. A weight of the catalyst particles is 5-20 wt.% based on weight of the biomass. The biomass feed comprises an algae-based feed. The liquid hydrocarbon product is combined with a mineral feed and a biocomponent feed before hydroprocessing. The hydroprocessing conditions comprise effective catalytic dewaxing conditions including a temperature 315-425 degrees C, a total pressure of 300-3000 psig, a liquid hourly space velocity (LHSV) of 0.2-10 hr-1, and a hydrogen treat gas rate of 500-2000 scf/bbl.    DESCRIPTION OF DRAWING(S) - The figure shows a schematic view of a method for hydrothermally processing biomass.    Producing an algae by an algae growth process (210)    Harvesting the algae (220)    Hydrothermal processing the harvested algae (230)    Three-phase separator (240)    Solids separation. (250)