The use of sheep wool in the textile industry has steadily declined due to the progressive replacement of natural fibres with synthetic polymers. Nevertheless, sheep shearing remains essential for hygiene and animal welfare in dairy herds. The collected wool poses storage and handling challenges, given its low density and contamination with organic residues and faecal matter. In the absence of sustainable valorization routes, sheep milk producers often resort to environmentally harmful disposal methods such as landfilling or incineration. This study explores dry carbonization as an alternative valorization method to convert sheep wool into biochar, with potential applications in energy production, adsorption, and soil amendment. Two wool treatments were applied to remove external contaminants: one involving extensive washing with tap water and the other combining sodium hydroxide and hypochlorite treatments followed by rinsing. Carbonization was carried out at 300 ℃ for 1 hour in closed crucibles. Both treated wool samples and the resulting biochars were characterized in terms of elemental and mineral composition, ash content, and lower heating value (LHV). Biochar yields ranged from 60.7% to 65.5%. The carbon and nitrogen contents varied between 58.7–63.2% and 13.0–13.4%, respectively. Estimated high heating values (HHV) ranged from 23 to 25 MJ/kg, comparable to other solid biofuels. However, the relatively high nitrogen content may limit combustion applications due to potential NOx emissions. Conversely, this nitrogen enrichment could be advantageous for soil amendment or CO₂ capture purposes. Soil amendment application potential was evaluated through leaching tests to assess mineral and nitrogen release, as well as tests of the water adsorption capacity of the produced chars. The agro-industrial use of these biochars aligns with circular economy principles by transforming a local waste material into a value-added product for agriculture. The biochars were further activated using alkaline solutions and characterized similarly to the raw samples. Their adsorption capacities were assessed via tests with methylene blue and methyl orange, representing cationic and anionic model pollutants. The results support dry carbonization as a viable alternative to traditional wool disposal, yielding multifunctional biochars for sustainable applications.