The conversion of renewable energy is one of the most important research fields. A novel upgrading method of bio-oil produced from fast pyrolysis of biomass was reported in the paper. Methanol, as hydrogenation liquid donor, was used in the hydrogenation process instead of hydrogen gas. The effects on the aqueous phase reforming (APR) of methanol and the in situ hydrogenation of model compounds (acetone and phenol) and bio-oil were investigated. The results showed that over Raney Ni catalyst, the in situ hydrogenation could couple with the APR of methanol. The conversions of acetone and phenol reached the highest point with 55.76% and 64.65% respectively at 220 degrees C, 3 MPa(N-2). The results of GC-MS analysis showed that after upgrading, the content of ketones & aldehydes and organic acids decreased from 30.36% and 39.89% to 9.32% and 30.25% respectively. The content of alcohols and esters increased from 8.89% and 4.9% to 16.33% and 20.53%. During the upgrading of bio-oil, hydrogenation and esterification were the main reactions. (C) 2014 Elsevier Ltd. All rights reserved.