The paper presents the research results pertaining to the renewable biomass charcoal–diesel slurries and their use as alternative fuels for combustion in diesel generating plants. The utilization of charcoal slurry fuel aims to reduce diesel oil consumption and would decrease fossil green house emissions into the atmosphere. The paper investigates the formulation, emulsification, sprays, combustion, injection system operation, and subsequent wear with charcoal–diesel slurries. In the research, cedar wood chips were used for the production of charcoal to be emulsified with diesel oil. The slurry’s viscosity of 27cP achieved the target (