In this study, simulated water effluent of transition metals (Ni, Zn, Fe, and Cu) and pine needles were integrated and treated hydrothermally for the generation of hydrogen and superparamagnetic carbon hybrid of metal/metal oxides of nano-size in a single-step. The temperature plays a significant role and decides the product yield and the same was varied (300-600 °C) to optimize the product yield. The highest yield of hydrogen was obtained with nickel metal effluent, 17.2 mmol. gram−1 of pine needles at 600 °C followed by other metals i.e., Fe(11.3 mmol.gram−1), Cu (10.64 mmol.gram−1), and Zn (8.86 mmol.gram−1) and greater than 99 % of the heavy metals (HMs) has been recovered from effluents (Ni, Zn, Fe, and Cu) in the form of nanometal carbon hybrid. The synthesized nanometal carbon hybrids were analyzed with the help of X-ray diffraction (XRD), and X-ray photoelectron spectroscopy (XPS), which shows that the metals present in the effluent get transferred to the lignocellulosic matrix of biomass during the supercritical water gasification (SCWG) that eventually gets reduced to pure metal (M(o)) from metal oxide (M(+n)). Metal oxide reduction results in the release of active oxygen, which promote the decomposition of the organics of biomass. Furthermore, the in-situ generated pure metal (M(o)) catalyzes the steam reforming and water gas shift reaction (WGS). Moreover, scanning electron microscopy (SEM), transmission electron microscopy (TEM), and vibrating sample magnetometer (VSM) indicate that synthesized nanometal carbon nanometal hybrid was quasi-spherical or cubical has a size less than <30 nm and are superparamagnetic material.