A method of converting organic materials into useful products and disposable waste including the steps of shredding the organic material into particles, mixing the organic particles with water to obtain a pumpable slurry, raising the temperature and pressure of the slurry to about 300.degree. to 500.degree. C. and about 8000 to 12,000 psig in a reaction vessel to cause the slurry to hydropyrolyize, separating the products of hydropyrolysis to remove gases from the liquids and solids, separating the liquids and solids, treating the separated gases and liquids to extract hydrocarbon components therefrom and using the solids as fuel directly.