The effect of weight ratio of plywood manufacturing by-product birch sawdust (BS) to water (1/2–1/8), reaction temperature (200–340 °C), initial H 2 pressure (0–10 MPa), residence time (5–90 min), catalysts amount (0.25–7.0 wt.%) and type (FeSO 4 , ZnSO 4 , NiSO 4 , Raney-nickel, Ni65%/SiO 2 [sbnd]Al 2 O 3 , Na 2 CO 3 and NaOH) on hydrothermal liquefaction of BS was investigated. High yield of bio-oil (54.1%) with calorific value (CV) 24.9 MJ/kg under developed optimal experimental conditions in the presence of NaOH (5 wt.%) utilizing weight ratio of BS to water 1/4, residence time 5 min, mixing speed 250 rpm at 300 °C without pressurized particular inert gas or H 2 atmosphere was achieved. Compounds in bio-oil analyzed by gas chromatography-mass spectrometry (GC-MS) have suitable chemical structures for conversion into renewable hydrocarbons. Marketable solid residue (SR) with yield 7.1%, high CV (29.8 MJ/kg) and perspective characteristics for industrial application was obtained. Produced gas in process analyzed by gas chromatography-thermal conductivity detector (GC–TCD) contains 60.1 vol.% of CO 2 .