A self-sustaining process for producing liquid fuels from biomass in which the biomass is hydropyrolyzed in a reactor vessel containing molecular hydrogen and a deoxygenating catalyst, producing a partially deoxygenated pyrolysis liquid, which is hydrogenated using a hydroconversion catalyst, producing a substantially fully deoxygenated pyrolysis liquid and a gaseous mixture comprising CO and light hydrocarbon gases (C1-C4). The gaseous mixture is reformed in a steam reformer, producing reformed molecular hydrogen, which is then introduced into the reactor vessel for hydropyrolizing the biomass. The deoxygenated liquid product is further processed to produce diesel fuel and gasoline.