<p>Catalytic pyrolysis of vacuum residue (VR) in the presence of superheated steam to valuable petroleum intermediates was studied extensively. Almond shell-derived biochar was used as the catalyst support and loaded with 15 wt% Fe as the active phase. Potassium and magnesia were used as promoters, which increased the basicity of the catalyst surface, accelerated cracking reactions and improved the dispersion of the active iron phase. The catalysts were extensively characterized with different techniques. Pyrolysis was conducted at 450–600 <InlineEquation ID="IEq1"> <EquationSource Format="TEX">\(^\circ{\rm C}\)</EquationSource> </InlineEquation> and atmospheric pressure in the presence of steam and the catalyst. Using steam increased the VR conversion to 87% and the production of mid-distillates to 68 wt%. In addition, the amount of coke decreased from 22 to 10% compared to pyrolysis in the absence of steam. The addition of un-promoted Fe/AC catalyst increased the conversion by accelerating the reactions to about 92% and mid-distillates to 75 wt%. Promotion of catalyst with K increased the selectivity of naphtha-range light hydrocarbons (C₆–C₉) to 50 wt%. Steam-assisted pyrolysis in the presence of low-cost K-promoted Fe/AC catalyst presented a promising solution for converting heavy refinery waste into high value fuels, addressing operational challenges and aligning with circular economy principles.</p> Graphical Abstract <p></p>