This study was classified into 2 part: the production of biomass fuel and the production of biochar from agricultural residue by using thermal decomposition process under anaerobic condition (known as carbonization). In addition, the effect of added glycerine on thermal and physical properties was also investigated. For biomass fuel production section, it was found that when the decomposed temperature increased the biomass fuel gave a better physical property in term of a higher shatter index and durability corresponding to the increase in densification. The effect of added glycerine, it was also shown a similar trend to decomposed temperature effect. For the biochar production section, it demonstrated that the produced biochar had a higher pH value and a higher cationic exchange capacity (CEC) than soil indicating that biochar can apply for soil amendment and essential nutrient retention.