What is Coconut Charcoal? Coconut charcoal is a type of charcoal made from the shells of coconut husks. It is a popular and sustainable alternative to other types of charcoal such as hardwood charcoal. Coconut charcoal has been used for centuries for cooking and heating purposes in many tropical regions around the world, and it is becoming increasingly popular in other parts of the world due to its eco-friendly properties and the fact that it burns hotter and longer than other types of charcoal.