TECHNOLOGY FOCUS - INORGANIC CHEMISTRY - Preferred Components: The additional catalyst is an additional base catalyst which is an alkali metal hydroxide catalyst or a transition metal hydroxide catalyst, preferably sodium hydroxide or potassium hydroxide. The catalyst that enhances incorporation of hydrogen and removal of oxygen from the organic matter is alkali metal formate catalysts, transition metal formate catalysts, reactive carboxylic acid catalysts, transition metal catalysts including their hydrides, sulfide catalysts, noble metal catalysts including their hydrides and/or water-gas-shift catalysts. The catalyst is: sodium formate; or a low-valent iron species including their hydrides, zero-valent iron homogeneous species and zero-valent iron heterogeneous species.    TECHNOLOGY FOCUS - ORGANIC CHEMISTRY - Preferred Method: The step of treating comprises contacting the slurry with subcritical or supercritical steam in a chamber of the reactor apparatus. In the method, the slurry is at ambient or near ambient temperature and pressure prior to contacting with the subcritical or supercritical steam. The step of treating comprises use of at least one additional catalyst: that enhances incorporation of hydrogen into the organic matter; and that enhances removal of oxygen from the organic matter. The step of treating: is performed under conditions of continuous flow; and is for a time period of at least 5 minutes, preferably 15 minutes. In the method, the temperature is 250-350 degrees C or 320-360 degrees C and the pressure is 150-250 bar. The method comprises recycling of the oil from the biofuel for use in the treatment of additional feedstock by the method. Preferred Components: The slurry comprises: oil (20-60 wt.%); organic matter (20-40 wt.%, preferably at least 30 wt.% or 40 wt.%); and alcohol (5-40 wt.%, preferably 5-10 wt.%). The slurry further comprises an aqueous alcohol, where the aqueous alcohol is ethanol or methanol. The organic matter feedstock is lignocellulosic matter, preferably lignite. The organic matter is fossilized organic matter having a carbon content of at least 50%. The slurry comprises a feedstock to oil ratio of 0.5-1.2:1. The oil is paraffinic oil, gas-oil, crude oil, synthetic oil, coal-oil, bio-oil, shale oil, kerogen oil, mineral oil, white mineral oil or aromatic oil. EXAMPLE - Pre-milled lignite-water slurry (70% water) was further slurried with ethanol and white mineral oil in the ratios lignite/water slurry:ethanol:mineral oil (5:1:4 by mass). Additional catalyst sodium hydroxide at a concentration of 0.1 Molar based on the total amount of water was added, and the reaction was carried at 240 bar pressure, 340 degrees C for 25 minutes residence time, to obtain products in an oil phase containing both the original mineral oil and new lignite-derived oil (synthetic crude oil), an aqueous phase containing dissolved organic compounds, and a solid phase consisting of a calorific char.