The HTL process differs from pyrolysis as it can process wet biomass and produce a bio-oil that contains approximately twice the energy density of pyrolysis oil. Pyrolysis is a related process to HTL, but biomass must be processed and dried in order to increase the yield. The presence of water in pyrolysis drastically increases the heat of vaporization of the organic material, increasing the energy required to decompose the biomass. Typical pyrolysis processes require a water content of less than 40% to suitably convert the biomass to bio-oil. This requires considerable pretreatment of wet biomass such as tropical grasses, which contain a water content as high as 80-85%, and even further treatment for aquatic species, which can contain higher than 90% water content.
The HTL oil can contain up to 80% of the feedstock carbon content (single pass). HTL oil has good potential to yield bio-oil with "drop-in" properties that can be directly distributed in existing petroleum infrastructure.
The energy returned on energy invested (EROEI) of these processes is uncertain and/or has not been measured. Furthermore, products of hydrous pyrolysis might not meet current fuel standards. Further processing may be required to produce fuels.