NOVELTY - Hydrothermal processing (230) biomass (I), comprises: (a) contacting a biomass feed with water in presence of a dissolved metal catalyst and a reducing gas under hydrothermal processing conditions to produce a multi-phase product; and (b) separating the multi-phase product to produce at least a gas phase portion, a liquid hydrocarbon product, an aqueous portion, and a solids portion.    USE - The process is useful for hydrothermal the biomass to produce liquid hydrocarbon product comprising distillate fuel, and petroleum like liquid.    ADVANTAGE - The process: allows for conversion of biomass into molecules having desired boiling range, and removes at least a portion of impurities that are not desirable in distillate product; utilizing metal catalyst that simplify components of product mixture and removes unwanted compounds; allows processing of biomass at supercritical conditions; provides rapid and virtually complete gasification of organic matter in feedstock; provides biomass based fuel product which are compatible with existing infrastructure and technologies; utilizing biocompatible material that serves as nutrient for growth of biomass and does not harm biomass growth environment; and is performed without vaporizing water, which reduces cost.    DETAILED DESCRIPTION - INDEPENDENT CLAIMS are also included for:    (1) hydrothermally processing biomass (II), comprising (a1) introducing a biomass feed, a solution containing a metal catalyst precursor, and a sulfiding agent into a reaction zone, (b1) contacting the biomass feed, metal catalyst precursor, and sulfiding agent with water in the presence of the reducing gas under hydrothermal processing conditions to convert the metal catalyst precursor into a sulfided metal catalyst and to produce the multi-phase product, and (b) as above per se; and    (2) hydrothermally processing biomass (III), comprising introducing the biomass feed and an aqueous recycle stream into the reaction zone, where the aqueous recycle stream containing at least one metal catalyst, contacting the biomass feed with the aqueous recycle stream, comprising the at least one metal catalyst, in the reaction zone under hydrothermal processing conditions to produce the multi-phase product, and separating a liquid hydrocarbon product from the multiphase product.    DESCRIPTION OF DRAWING(S) - The figure schematically shows a reaction scheme for hydrothermal processing of biomass.    Algae growth process (210)    Algae harvesting (220)    Hydrothermal processing (230)    Three-phase separator (240)    Gas phase product (242)