Biofuels of the second generation can contribute significantly to the replacement of the currently used fossil energy carriers for transportation fuel production. The lignocellulosic biomass residues used do not compete with food and feed production, but have to be collected from wide‐spread areas for industrial large‐scale use. The two‐stage gasification concept bioliq offers a solution to this problem. It aims at the conversion of low‐grade residual biomass from agriculture and forestry into synthetic fuels and chemicals. Central element of the bioliq process development is the 2–5 MW pilot plant along the complete process chain: fast pyrolysis for pretreatment of biomass to obtain an energy dense, liquid intermediate fuel, high‐pressure entrained flow gasification providing low methane synthesis gas free of tar, hot synthesis gas cleaning to separate acid gases, and contaminants as well as methanol/dimethyl ether and subsequent following gasoline synthesis. After construction and commissioning of the individual process steps with partners from industry, first production of synthetic fuel was successfully achieved in 2014. In addition to pilot plant operation for technology demonstration, a research and development network has been established providing the scientific basis for optimization and further development of the bioliq process as well as to explore new applications of the technologies and products involved. WIREs Energy Environ 2017, 6:e236. doi: 10.1002/wene.236This article is categorized under: Bioenergy > Science and Materials Bioenergy > Systems and Infrastructure