Biochar is a relatively recent term used to denote charcoal used as an agricultural input into soils. The idea comes from the use of charcoal in the Amazon on deep, highly leached, and infertile soils by Amazonian peoples in pre-Columbian times. Biochar differs most significantly from charcoal in its primary use; rather than fuel, it is primarily used for the amendment of soils (enhancing their fertility) and sequestration of carbon. One of the distinguishing properties of biochar that allows it to be a long-term carbon sink is its high stability in the environment relative to other types of organic carbon substances. Currently, however, very little or no biochar is utilized in Ethiopia particularly at Benishangulgumze Region for agriculture, in part because of its agronomic value in terms of crop response and soil health benefits have yet to be quantified, and because of the mechanisms by which it improves soil fertility are poorly understood. Therefore, the research is focused on converting the biomass of grasses and chat in to biochar in the process of pyrolysis for yield improvement, soil amendment and environmental pollution reduction. Findings of this research shows environmental pollution that regenerating from chat waste around the town, CO 2 gas emission from grass when it is burning become reduced, soil physiochemical properties make improvements by using these waste as biochar instead of throwing everywhere and farmer's cost of buying inorganic fertilizer by using biochar of grass and chat waste as organic fertilizer have significant reduction. Biochar of grass and inorganic fertilizer was required to realize significant increases in fresh marketable bulb yield of onion on the experimental soil. Environmental pollution can reduced through making biochar from the polutants. Chat and grass biochar should used for briquette energy source to save the environment from pollution beside use as fertilizer. Modern technologies are required during preparation of biochar because during making biochar there are gas emit to the atmosphere but can used as ethanol or syngagass for substitute fuels determination of methane formed through decomposing waste of grass and chat is required.