This study investigates the suitability of different lignocellulosic sources, namely eucalyptus, apple bagasse, and out-of-use wood, for injection into blast furnaces (BFs). While wastes possess carbon potential, their high moisture renders them unsuitable for direct energy utilization. Additionally, the P and K impurities, particularly in apple bagasse, can pose operational and product quality challenges in BF. Thus, different thermochemical processes were performed to convert raw biomass into a more suitable carbon fuel. Low-temperature carbonization was selected for eucalyptus, yielding a biochar with properties closer to the low-rank coal. Hydrothermal carbonization was chosen for apple bagasse and out-of-use wood, resulting in hydrochars with enhanced fuel characteristics and fewer adverse inorganic species but still limiting the amount in binary PCI blends. Thermogravimetry evaluated the cause–effect relationships between coal and coal- and bio-based chars during co-pyrolysis, co-combustion and CO2-gasification. No synergistic effects for char formation were observed, while biochars benefited ignition and reactivity during combustion at the programmed temperature. From heat-flow data in combustion, the high calorific values of the chars were well predicted. The CO2-gasification profiles of in situ chars revealed that lignin-rich hydrochars exhibited higher reactivity and conversion than those with a higher carbohydrate content, making them more suitable for gasification applications.