A multi-stage method and apparatus for producing methane from biomass in which the biomass is hydropyrolyzed in a reactor vessel containing molecular hydrogen and a deoxygenating catalyst, the output of which is hydrogenated using a hydroconversion catalyst. The output from the hydroconversion step is provided to a water-gas-shift process providing a mixture of H2O and product gases including CO2, H2, and methane. The mixture components are separated, resulting in a product stream comprising substantially only methane.