NOVELTY - Producing (M1) (100) biofuel involves i) providing a biomass containing celluloses, hemicelluloses, lignin, nitrogen, and sulfur compounds; ii) contacting biomass (102) with digestive solvent (110); iii) contacting biomass with hydrogen (121) at 180-290 degrees C in presence of supported hydrogenolysis catalyst containing a) sulfur, b) molybdenum or tungsten, and (c) cobalt and/or nickel incorporated into a support, to form several oxygenated intermediates (130), and iv) processing portion of oxygenated intermediates to form a liquid fuel (150).    USE - For producing biofuel from biomass (claimed); for producing higher hydrocarbons for use in transportation fuels and industrial chemicals.    ADVANTAGE - The use of a poison tolerant catalyst in the process enables direct coupling of biomass hydrolysis and hydrogenation/hydrogenolysis/hydrodeoxygenation of the resulting sugar. At least a portion of oxygenated intermediates produced in the hydrogenolysis reaction are recycled within the process and system to at least in part from the in situ generated solvent, which is used in the biomass digestion process. This recycle saves costs in provision of a solvent that can be used to extract nitrogen, sulfur, and optionally phosphorus compounds from the biomass feedstock. Further, by controlling the degradation of carbohydrate in the hydrogenolysis process, hydrogenation reactions can be conducted along with the hydrogenolysis reaction at temperatures ranging from 150-275 degrees C. As a result, a separate hydrogenation reaction section can optionally be avoided, and the fuel forming potential of the biomass feedstock fed to the process can be increased. This process and reaction scheme also results in a capital cost savings and process operational cost savings.    DETAILED DESCRIPTION - Producing (M1) (100) biofuel involves i) providing a biomass containing celluloses, hemicelluloses, lignin, nitrogen, and sulfur compounds; ii) contacting biomass (102) with digestive solvent (110) to form pretreated biomass containing soluble carbohydrates; iii) contacting biomass with hydrogen (121) at 180-290 degrees C in presence of supported hydrogenolysis catalyst containing a) sulfur, b) molybdenum or tungsten (Mo or W), and c) cobalt and/or nickel (Co or Ni) incorporated into a support, to form several oxygenated intermediates (130), and iv) processing portion of oxygenated intermediates to form a liquid fuel (150). INDEPENDENT CLAIMS are included for the following:    (1) a system comprising a digester that receives a biomass feedstock and a digestive solvent operating under conditions effective to produce soluble carbohydrates from biomass feedstock and discharges a treated stream comprising a soluble carbohydrate, a hydrogenolysis reactor comprising a supported hydrogenolysis catalyst containing a) sulfur, b) Mo or W, and c) Co and/or Ni, that receives hydrogen and the treated stream and discharges an oxygenated intermediate stream, where a first portion of the oxygenated intermediate stream is recycled to the digester as at least a portion of the digestive solvent, and fuels processing reactor comprising a condensation catalyst that receives a second portion of the oxygenated intermediate stream and discharges a liquid fuel; and    (2) a composition comprising ia) lignocellulosic biomass, iia) hydrogenolysis catalyst containing a) sulfur, b) Mo or W, and c) Co and/or Ni, and d) phosphorus, incorporated into a support, iiia) water, and iva) digestive solvent.    DESCRIPTION OF DRAWING(S) - The figure shows a schematic block flow diagram of the higher hydrocarbon production process.    Higher hydrocarbon production process (100)    Biomass (102)    Digestion zone (106)    Digestive solvent (110)    Treated biomass pulp (120)    Hydrogen (121)    Hydrogenolysis zone (126)    Oxygenated intermediate (130)    Liquid fuel (150)