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Aqueous solutions of lactic acid can be catalytically processed over Pt(0.1%)/Nb2O5 into a spontaneously-separating organic layer that can serve as source of valuable chemicals (propanoic acid and C4–C7ketones) and/or can be used to produce high energy-density liquid fuels (C4–C7alcohols). The niobia support plays a key role in the synthesis by catalyzing dehydration and C–C coupling reactions.