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Charcoal is an item similar to coal, that is, in it being a fuel.
There are several ways to get charcoal:
- Burn any kind of wood logs in a furnace or any type of forge, except for Hobbit ovens (food only) and Orc forges (yield charred wood). This yields one charcoal per log.
- Find it as loot in some structures.
As stated above, it can be used as fuel same as coal. There are a lot of vanilla crafting recipes along with the crafting into charcoal dust, added by the Mod. It can also be used together with sulfur and nitre to create gunpowder.