Both black and brown coals are ideal fuels, although people are more familiar with black coal. Black coal is considered more suitable as fuel, and unlike brown coal, black coal contains a lesser amount of water. Black coal generates more energy than the brown coals, and brown coal has only one-quarter of the heating value of black coal. Brown coal is called lignite, and black coal is called bituminous, and black coal also contains more carbon content.

In contrast to black coal, brown coal comes with high moisture. Nonextreme pressure and temperature are involved in the formation of brown coal; however, black coal is formed because of extreme temperatures and pressure. Black coals are used for making caking coals, and brown coals are used for the production of electricity and to create water gas.