In at least one embodiment of the present invention, a method for producing liquid hydrocarbons from biomass is provided. The method comprises pyrolizing the biomass with hydrogen (H.sub.2) to form bio-oil. The bio-oil comprises alkanes, alkenes, alcohols, aldehydes, ketones, aromatics, hydrocarbons or mixtures thereof. The H.sub.2 is formed from a carbon-free energy source.