The purpose of this paper is to give a comprehensive description of the construction and commissioning of a continuous reactor system for hydrothermal liquefaction of biomass. The basis is a newly established facility at Aarhus University. It is capable of handling viscous biomass slurries and features a novel induction-based heating method that facilitates well defined reaction-environments. Carbon balance closure is obtained as all product fractions are recovered and positively quantified. The paper includes a residence time distribution measurement and a 24 hour proof-of-concept experiment conducted at 350 °C, 250 bar, and 15 minutes reaction time. It is based on the biomass dried distillers grains with solubles (DDGS), a waste product of the bio-ethanol industry. The experiment seeks to determine the steady state characteristics of the continuous reactor system for use in future experimental studies. It was found that steady state occurs within 6 hours. Furthermore, data sampling windows of 2.1 hours were found to mask the intrinsic variations of the system while still exposing trends. At steady state the oil mass yield was found to be 38.9 +- 3.2 % and the higher heating value was 35.3 +- 0.28 MJ kg-1.