Hi Dennis,
a few general ideas, because I haven't fully understood your query.
Did you check if water (with potassium hydroxide) is liquid (as you want a "solution", or possibly a suspension) under these conditions? 623K=350°C is near the critical point of 374°C and 218bar for pure water, so 19bar look very little. Or is it 19MPa rather?
For a reaction in a liquid medium, you don't want to heat first and put pressure later, since 350°C would evaporate the water.
Near its critical point, liquid water has expanded by a factor of four. The apparatus must cope with this.
Oil for a heat exchanger too must be heated first and this costs, unless you have waste heat elsewhere at the production plant.
To reduce the heating costs, recycle the heat from the reactor's output to pre-heat the reactants, and add costly heat only afterwards. This needs an exchanger, which isn't trivial to keep clear if you use slurries.
You might seek a liquid accepting higher temperatures than oil. And I would question the fire hazard of the oil too, not only the reactants and products. Catechol is volatile: flash point +127°C, autoignition 510°C.
"Steam has a low heat capacity": you should put figures on that. Condensing it over 350°C brings supposedly little, and I see too little temperature margin for liquid water, but vapour does carry heat, so compare with your needs.
Maybe (but maybe not!) you could heat the water (plus hydroxide optionally) separately, far from the flammable reactants and products, and introduce it in the reactor to heat the rest. Potentially safer, but proper mixing is more difficult under the reactor's conditions, and introducing a solid too.
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Could someone explain me the English Wiki's data about catechol?
https://en.wikipedia.org/wiki/CatecholMelts at +105°C, boils at +246°C (sublimes).