In a method and apparatus for thermal processing of slurry, slurry is combined with a bio-mass to produce a mixture. The mixture is subjected in a heated mixer pump to a cracking temperature, thereby allowing the mixture to catalytically undergo a cracking reaction to produce a reaction mixture which is directly outgased in the mixer pump to produce an outgased portion and a solid portion. The outgased portion and the solid portion are separately discharged from the mixer pump; with the low boiling fraction of the outgased portion allowed to cool down for further processing, and the solid portion collected in a residual matter container for further processing.