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Charcoal is a resource that is created by burning Wood in a furnace. Since collecting wood is quick with the treecapitator mod, charcoal can be used as fuel for a generator early in the game. However, charcoal cannot be turned into Coal, and it cannot be macerated into coal dust.
Charcoal can also be made using a Minium stone with one Charcoal and 7 Wood.
It can also be used to craft Charcoal Blocks.