The effects of reaction temperature, reaction time, heating rate, nitrogen flow rate, and catalyst quality on the oil yield and oxygen content in oil were investigated by using the single-factor principle. Too high and too low reaction temperature, nitrogen flow rate, heating rate, and reaction time improved the yield of bio-oil, but the oxygen content in bio-oil was higher. The reduction in catalytic dose is beneficial to the increase in oil yield but not conducive to the increase in aromatic compound content. The optimal reaction conditions were observed as a reaction temperature of 500 °C, a nitrogen flow rate of 110 mL/min, a heating rate of 20 °C/min, a reaction time of 15 min, a mass ratio of catalyst to coconut coat powder of 1, an oil yield of 4.97%, a water yield of 35.80%, and a solid yield of 30.78%. The gas yield was 28.45%, the oxygen content was 10.3%, and the aromatic compound content was 89.7%. The analysis of the catalytic cracking mechanism shows that most of the oxygen-containing compounds in bio-oil are generated into water and aromatic compounds by a catalytic cracking reaction at high temperature, thus removing oxygen.
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