TECHNOLOGY FOCUS - CHEMICAL ENGINEERING - Preferred Components: The catalytic pyrolysis subsystem including a pyrolysis reactor operatively connected to a gas cyclone, a quench tower, a high-temperature shift apparatus and a low-temperature shift apparatus. The butanol reactor system includes a butanol reactor operatively connected to a gas compressor and/or a medium reservoir. The microorganism growth system includes a microorganism growth apparatus. The butanol separation system includes a solid filtration apparatus operatively connected to a gas stripping apparatus, a condensation apparatus and a decanting apparatus. The catalytic pyrolysis subsystem includes a pyrolysis reactor operatively connected to gas cyclone, quench tower, high-temperature shift apparatus and/or low-temperature shift apparatus. The biomass conversion system further includes a char gasifier/reformer, and gas cyclone operatively connected to direct char to the char gasifier/reformer. The char gasifier/reformer is provided to accept char output from gas cyclone and to produce hydrogen from the char output. The char gasifier/reformer is operatively coupled to direct hydrogen to the high-temperature shift apparatus. The butanol reactor is operatively connected to a mixing apparatus (M1), a mixing apparatus (M2), gas compressor, medium reservoir and a mixing apparatus (M3). The catalytic pyrolysis reactor is provided to pyrolyze the biomass to produce bio oil with low oxygen content. The catalytic pyrolysis system further includes an upgrader operatively coupled to the catalytic pyrolysis reactor, and a size-based separation device for separating carbon dioxide and hydrogen. The upgrader is provided to upgrade bio oil to yield an infrastracture-compatible hydrocarbon fuel. The catalytic pyrolysis reactor is configured to direct hydrocarbonaceous substance to a container or stream, and is operatively coupled to butanol bioreactor system. The catalytic pyrolysis reactor is configured to direct carbon dioxide into carbon dioxide stream to the butanol bioreactor system. The water-gas shift reactor operatively coupled to the catalytic pyrolysis reactor. The catalytic pyrolysis reactor is configured to direct carbon monoxide to the water-gas shift reactor. The char gasifier/reformer is operativelv coupled to the catalytic pyrolysis reactor. The char gasifier/reformer is configured to direct hydrogen to butanol bioreactor. The size-based separation device is operatively coupled to direct carbon dioxide and/or hydrogen to butanol bioreactor. The catalytic pyrolysis reactor is configured to operate as a biomass gasifier to conduct water-gas shift reaction. The carbon dioxide gas inlet is configured to accept carbon dioxide from carbon dioxide outlet of size-based separation device. The hydrogen gas inlet is configured to accept hydrogen from hydrogen gas outlet of size-based separation device. The hydrogen gas inlet is configured to accept hydrogen from char gasifier/reformer. The air-sparged media inlet is configured to direct growth media including oxygen into the hollow fiber membrane bioreactor. The hydrogen gas inlet, carbon dioxide gas inlet and air-sparged media inlet is configured together for direct or indirect mixing of oxygen, hydrogen and carbon dioxide. The biofilm includes hydrogen bacteria. The metabolic activity of bacteria contained in the biofilm drives the diffusion of the gases out of carbon dioxide hollow fiber and hydrogen hollow fiber. The hollow fiber membrane bioreactor further includes probes embedded in the biofilm, and configured to sense oxygen, hydrogen and/or carbon dioxide. The hollow fiber membrane bioreactor is operated using genetically-modified hydrogen bacteria for producing biofuel. Preferred Process: Alternately, the method for converting biomass involves pyrolyzing biomass in catalytic pyrolysis reactor to produce bio oil and carbon monoxide, directing carbon monoxide to water-gas shift reactor to produce hydrogen and carbon dioxide, separating hydrogen and carbon dioxide into hydrogen gas stream and carbon dioxide gas stream using size-based separation device, directing hydrogen gas stream to hydrogen gas inlet of the bioreactor, and directing carbon dioxide stream to carbon dioxide gas inlet of the bioreactor.