Synthetic scheme for the formation pathway of metallic nickel nanoparticles supported on the hydrochar derived from lignin-rich precursory biomass. Display omitted •Well-dispersed metallic nickel nanoparticles were fabricated on the hydrochar as catalysts.•The role of concentration of precursory nickel ions and calcination temperature were probed.•The average grain size of the metallic Ni NPs can be manipulated between 8 and 13 nm.•The catalysts exhibited enhanced catalytic activity for hydrogen production and tar reduction. The synthesis of carbon-based nanomaterials, ideally produced via facile, inexpensive approaches, using sustainable resources as precursors, with modulated structures, morphologies and functionalities is still challenging for energy applications. This work developed a mild one-step hydrothermal synthesis route for the fabrication of highly dispersed metallic nickel nanoparticles on hydrothermal carbons derived from waste biomass. The roles of precursor nickel ion concentration and calcination temperature in modulating the morphology, location and crystalline size of the nickel nanoparticles as well as the metal-support interactions have been delineated. The average grain size of the metallic nickel nanocrystals on the resultant Ni0.5@HCOp nanocatalysts could be tuned to 8–13 nm by varying the preparation conditions. The catalytic abilities of the Ni-based nanocatalysts towards hydrogen-rich syngas production and tar reduction were then tested in a two-stage reactor system using sewage sludge as biomass feedstock. The catalytic tests showed that the Ni0.5@HCOp catalyst calcined at 700 °C was shown to have stronger metal-support interactions compared to other Ni-based nanocomposites, which provided better suppression of coke deposition and resistance of nickel agglomeration during the catalytic gasification process. This highly active catalyst promoted formation of hydrogen-rich syngas, with up to 109.2 g H2/kg sludge, and tar yields as low as 2.12 mg g−1.