The invention relates to a process for preparing a paraffin product from a carbonaceous feedstock comprising (a) partial oxidation of the carbonaceous feedstock to obtain a mixture comprising hydrogen and carbon monoxide, (b) performing a Fischer-Tropsch reaction using the mixture as obtained in step (a) and recovering an off-gas from the Fischer-Tropsch reaction and a paraffin product, (c) hydrogenating at least a part of the off-gas from the Fischer-Tropsch reaction using a steam/off-gas mol ratio in the range of between 0.5 and 1.5 and a catalyst comprising copper and zinc, followed by a conversion step (d) using a nickel based catalyst, and (e) preparing a hydrogen comprising gas from at least a part of the off-gas from the Fischer-Tropsch reaction.