Charcoal

 is one of Resources in the game Forest Village.

can be used to heat houses and is more efficient than firewood. (It lasts 40% longer and generates 62.5% more heat)

Charcoal is manufactured by Kilners from Firewood

This is also used to smelt iron ore into cast iron in the Furnace.

Cast iron is required to manufacture High-quality tools in the Blacksmith's shop.