TECHNOLOGY FOCUS - INORGANIC CHEMISTRY - Preferred Components: The catalyst comprises a slurry catalyst.    TECHNOLOGY FOCUS - ORGANIC CHEMISTRY - Preferred Method: The method further comprises: (A) upwardly circulating at least a portion of the combined phase through the cellulosic biomass solids to provide at least a portion of the upwardly directed fluid flow; (B) at least partially depolymerizing the lignin in the combined phase or the phenolics liquid phase by heating the combined phase or the phenolics liquid phase to a temperature of at least 270 degrees C in the presence of molecular hydrogen and a catalyst capable of activating molecular hydrogen; (C) measuring the viscosity of the combined phase or the phenolics liquid phase; (D) at least partially depolymerizing the lignin until a desired viscosity has been reached; (E) forming methanol in the combined phase or the phenolics liquid phase while at least partially depolymerizing the lignin; (F) combining the methanol with the alcoholic component separated from the combined phase; (G) after partially depolymerizing the lignin, removing the slurry catalyst from the combined phase or the phenolics liquid phase and returning the slurry catalyst to the cellulosic biomass solids or to the hydrothermal digestion unit; (H) at least partially depolymerizing the lignin in the combined phase or the phenolics liquid phase before removing the slurry catalyst from it; and (I) removing at least a portion of the phenolics liquid phase or the combined phase from the hydrothermal digestion unit and returning it to it, where the lignin is at least partially depolymerized in the hydrothermal digestion unit or external to the hydrothermal digestion unit. The alcoholic component is formed by a catalytic reduction reaction of soluble carbohydrates that are derived from the cellulosic biomass solids. The step of partially depolymerizing the lignin takes place after, while or before separating the alcoholic component. The viscosity is decreased by at most 20% by at least partially depolymerizing the lignin. The step of combining the liquid phase and the aqueous phase with one another comprises a mechanical agitation, circulating the phenolics liquid phase and the aqueous phase through the cellulosic biomass solids and/or adding a surfactant to at least one of the phases. The step of partially converting the cellulosic biomass solids into a phenolics liquid phase takes place in a hydrothermal digestion unit in the presence of molecular hydrogen and a slurry catalyst capable of activating molecular hydrogen, where the slurry catalyst is at least partially distributed in the cellulosic biomass solids using upwardly directed fluid flow. At least a portion of the slurry catalyst accumulates in the phenolics liquid phase as it forms and circulated with the combined phase. The step of removing the slurry catalyst from the combined phase or the phenolics liquid phase takes place external to the hydrothermal digestion unit. The cellulosic biomass solids are heated to a first temperature to form the phenolics liquid phase and the aqueous phase and to a second temperature to at least partially depolymerize the lignin, where the first temperature is lower than the second temperature and insufficient to at least partially depolymerize the lignin. Preferred Composition: The composition further comprises cellulosic biomass solids. Preferred Components: The alcoholic component comprises a monohydric alcohol, a glycol (preferred) and/or a triol. The organic portion further comprises a methoxyphenol, and methanol.