Algae are potential feedstock for the production of bioenergy and valuable chemicals. After the extraction of specific value-added products, algal residues can be further converted into biogas, biofuel, and biochar through various thermochemical treatments such as conventional pyrolysis, microwave pyrolysis, hydrothermal conversion, and torrefaction. The compositions and physicochemical characteristics of algal biochar that determine the subsequent applications are comprehensively discussed. Algal biochar carbonized at high-temperature showed remarkable performance for use as supercapacitors, CO2 adsorbents, and persulfate activation, due to its graphitic carbon structure, high electron transport, and specific surface area. The algal biochar produced by pyrolysis at moderate-temperature exhibits high performance for adsorption of pollutants due to combination of miscellaneous functional groups and porous structures, whereas coal fuel can be obtained from algae via torrefaction by pyrolysis at relatively low-temperature. The aim of this review is to study the production of algal biochar in a cost-effective and environmental-friendly method and to reduce the environmental pollution associated with bioenergy generation, achieving zero emission energy production.