The present invention refers to a process for catalytic fractionation of peat, coir, peat-like materials or mosses into a non-pyrolytic bio-oil and a sterile solid fraction with similar volume and structural function to the starting material. The inventive process is useful for a variety of interesting applications, starting from raw peat with a water content of up to 80% resulting in a an oil, rich in polyols and aliphatic molecules.