This study comprehensively evaluates the potential of biochar as a substitute for high‐rank pulverized coal in various aspects including physicochemical properties, combustion performance, environmental emissions, and application costs. Biochar, characterized by its small particle size, reduced emissions, high volatility, elevated calorific value, and facile combustion, emerges as a promising alternative fuel to pulverized coal. Despite a lower ignition temperature, biochar demonstrates superior burnout efficiency and combustion kinetics, as indicated by its lower activation energy compared to pulverized coal. Moreover, considering China's substantial energy consumption, the substitution of coal with biochar could significantly reduce CO2 and SO2 emissions, making it a viable strategy for mitigating environmental pollution. In addition, the application cost of biochar is not higher than that of pulverized coal. This study underscores the feasibility and effectiveness of utilizing biochar as a sustainable alternative to high‐rank pulverized coal, offering valuable insights into cleaner and more efficient energy utilization.