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Biochar produced during the thermochemical decomposition of biomass is an environmentally friendly replacement for different carbon materials and can be used for carbon sequestration to mitigate climate change. In this paper, current biochar production processes and top market applications are reviewed, as well as emerging biochar uses gaining momentum in the market. Various application fields of biochar, including agricultural applications (e.g., soil conditioning), adsorption (for soil and water pollutants), carbon sequestration, catalysis, or incorporation into composites or construction materials, are also presented and discussed. According to this literature overview, slow pyrolysis is the preferred process for biochar production, whereas agricultural applications (for soil conditioning and fertilization) are the most studied and market-ready solutions for biochar use. The Alentejo region (Portugal) shows tremendous potential to be a major player in the developing biochar market considering feedstock availability and large areas for biochar agricultural application. Biochar’s production potential and possible benefits were also estimated for this Portuguese region, proving that agricultural application can effectively lead to many environmental, economic, and social gains.