TECHNOLOGY FOCUS - CHEMICAL ENGINEERING - Preferred Conditions: The condensation process occurs in a distillation column in the presence of a heterogeneous acid catalyst chosen from organic sulfonic acid, perfluoroalkylsulfonic acid, zeolite, sulfated transition metal oxide, perfluorinated ion-exchange polymer containing pendant sulfonic acid, carboxylic acid, or sulfonic acid group, sulfonated copolymer of styrene and divinylbenzene, sulfated silica, alumina, titania and/or zirconia, and/or amorphous silicon-aluminum, preferably beta -zeolite. The catalyst is located in the distillation column at preset location within the distillation column where the concentration of oxygenates is elevated. Condensation reaction is Diels-Alder reaction, aldol condensation, Michael addition reaction, or Robinson annulations reaction. The oxygenates are carboxylic acids, ketones, and/or aldehydes. The ketones are methyl vinyl ketone and ethyl vinyl ketone. The hydrotreated condensates are separated into a naphtha fraction containing 5-10C hydrocarbons and a hydrocarbon fraction containing 10C or higher hydrocarbons. The hydrotreated condensates are subjected to fractionation to render 180-420 degrees F naphtha and hydrocarbon fraction(s) having a boiling point of less than 180 degrees F. The condensates are hydrotreated in a hydrotreater having a catalytic bed. Transportation fuels are prepared from the separated hydrocarbon fractions. The feed stream containing carbonyl oxygenates is naphtha geed stream. The naphtha feed stream is a hydrocarbon distillate separated in a fractionator. The feed stream containing carbonyl oxygenates is derived from an aqueous stream removed from a solids separator. Condensation occurs in the presence of a supported basic catalyst chosen from alkaline oxide, alkaline earth metal oxide, group IIB oxide, and group IIIB oxide. The basic catalyst is magnesium oxide, calcium oxide, strontium oxide, barium oxide, zirconia, titania, and/or cerium oxide. Condensation of carbonyl oxygenates occurs at 230-450 degrees F. Condensation and hydrotreating occur in the same reactor. Biomass is converted into a biomass conversion reactor into gaseous, liquid and solid components, solids are separated from the liquid phase in a solid separator, and liquid phase is separated into an aqueous phase and bio-oil.