Carbon-encapsulated iron nanoparticles (CEIN) were prepared from a solution of Iron(II) chloride (FeCl2) and wood derived sugars under hydrothermal carbonization (HTC) conditions. The obtained nanostructures were characterized by SEM, TEM, HRTEM, XRD, TPD, Raman, and FTIR. The size of these nanospheres was approximately 100-150 nm in diameter with an iron core diameter of 10-25 nm. The carbon-encapsulated iron nanoparticles were used as catalysts to thermochemically convert wood derived syngas into liquid hydrocarbons. These nanoparticles showed excellent catalytic performance when used as catalysts for the Fischer-Tropsch synthesis (FTS) process, and these nanoparticles showed high selectivity towards creating C-5(+) hydrocarbons. While undergoing reactions with biomass derived syngas at 290 degrees C, the CO conversion rate from this catalyst was found to be 89.5% and hydrocarbon selectivity was discovered to be 65%. (C) 2015 Elsevier Ltd. All rights reserved.