In Malawi, charcoal is almost exclusively derived from trees. It is a multifaceted phenomenon: production of charcoal represents an ever-expanding important livelihood for rural communities; its consumption is predominantly in urban areas and demand is ever-growing. Charcoal is thus an energy and income source of great significance on one hand, and a leading driver of deforestation on the other. Charcoal is a convenient and attractive energy source because of its high calorific value compared to firewood. It is cleaner, producing less smoke when burned than firewood; it is generally less expensive to cook with; and it provides a reasonable substitute for electricity during frequent power disruptions. However, this demand for charcoal is also a considerable driver of deforestation, and deforestation is having considerable impacts on livelihoods of rural Malawians. Additionally, it is foreseen that Malawi‟s demand for wood fuel is set to exceed supply by the year 2030. This presents a need and an opportunity for alternative sources of fuel to stem deforestation while enabling continued modernization and development.