Despite being a limited and scarce resource, the necessity and exploitation of fossil fuels are unstoppable in serving human demands. In order to supply energy demand without causing environmental damage, it is crucial to utilize a variety of renewable feedstock resources. Biochar, made up mostly of carbon, oxygen, and hydrogen, is the product of the thermochemical processes of pyrolysis, hydrothermal carbonization, torrefaction, and hydrothermal liquefaction. Biochar, once activated, has the potential to act as a catalyst in a variety of energy generation processes, including transesterification and fermentation. Transesterification is the process that is used to produce biodiesel from a variety of oils, both edible and non-edible, as well as animal fats in the presence of either a homogeneous or a heterogeneous catalyst. When selecting a catalyst, the amount of free fatty acid (FFA) content in the oil is considered. Homogeneous catalysts are superior to heterogeneous catalysts because they are unaffected by the concentration of free fatty acids in the oil. Homogeneous catalysts are extremely hazardous, as they are poisonous, combustible, and corrosive. In addition, the production of soaps as a byproduct and a large volume of wastewater from the use of homogeneous catalysts necessitates additional pretreatment procedures and costs for adequate disposal. This article examines the biochar-based fuel-generation catalyst in detail. At first, a wide variety of thermochemical methods were provided for manufacturing biochar and its production. Biochar’s chemical nature was analyzed, and the case for using it as a catalyst in the production of biofuels was also scrutinized. An explanation of how the biochar catalyst can improve fuel synthesis is provided for readers. Biodiesel’s transesterification and esterification processes, biomass hydrolysis, and biohydrogen generation with the help of a biochar catalyst are all reviewed in detail.