The distribution of utilizable geothermal reservoirs in the US is concentrated in areas of low population density. In order to increase the scale of geothermal operations, we proposed to develop a modular biofuel production facility that directly uses geothermal heat. By transforming geothermal heat to chemical potential energy (rather than electricity), the scale of existing or new geothermal operations can be increased and distributed to areas of higher population density. Simultaneously, the economics of producing biocrude oil is improved significantly where geothermal heat is used, instead of natural gas-fired systems for providing heat and power. In the Phase I project, we demonstrated that it was economically feasible to sustainably produce a biofuel by integrating geothermal heat. It was found that, for the best case scenario at a scale of 10T(biomass)/hr, it was possible to produce a biofuel for $0.26/L, as compared to crude oil at $0.3/L (current selling price). Ultimately this demonstrates that this technology can be economically sustainable when integrated with geothermal heat. We also demonstrated that the addition of modular biofuel-production technologies can be more profitable for a geothermal plant operator. For 1000kg/day scale, it was found that it could be 2.5 times more profitable for a geothermal plant operator to sell bio-oil rather than electricity (with a waste source within 20 miles of the processing facility). Furthermore, as the design of the proposed technology recycles significant heat, requiring between 5% and 20% of the total heat load of the biofuel process to be supplied by the geothermal plant, it is feasible for an operator to initially implement the technology at small scale (i.e. less than 100gal/day) with the plans of scaling up operations in the future. Implementing the technology incrementally may minimize initial the investment and financial risk for the operator. Finally, in the Phase I project, we built and tested a hydrothermal system developed at ARI. We tested three different feedstock types, pure algae feed, algae mixed with manure, and algae with in-situ catalysts (molybdenum trioxide), over a range of temperatures and residence times. In terms of oil products, our results (yield, process times and elemental balance) were similar to what was obtained at PNNL. As such our experiments matched well with the techno-economic design (mass throughput specifications), and will thus well inform the Phase II process design. The experimental data obtained on the hydrothermal treatment of algae indicated that the highest recovery of oil occurred at 250�C. This shows that HTL can be carried out 100�C lower than what is currently considered ?state of the art?, and thus save significant energy savings. Further, it was found that oil-recovered fractions had lower amounts of nitrogen at lower temperatures, indicating that oil produced at 250�C is of higher quality than if we were to produce fuel at 350�C.