Wild (or lowbush) blueberries (Vaccinium angustifolium Ait.) undergo severe drought impacts due to climate warming because they grow in sandy soils with poor water retention. The feasibility was studied for using biochar in a forest biomass-fueled combined heat and power (CHP) plant to amend the sandy soils. The chemico-physical properties (e.g., bulk density, moisture content, porosity, pH) of the biochar were measured. An acid treatment method (1% to 3% acidic or citric acid solution) was developed to decrease the biochar pH from 11.4 to neutral or lower, aiming to aid in weed control in wild blueberry fields. The water holding capacity (WHC) of sandy soils (S) mixed with biochar (B) (Type I) and sandy soils mixed with both biochar and fertilizer (Type Il) at four ratios of 100S:OB (control), 50S:50B, 30S:70B, and 10S:90B were measured. The biochar generated from the CHP plant had comparable physical properties (such as bulk density, porosity, pH, and surface area) with woody biochar made from pyrolysis. The acid treatment method significantly lowered the pH to a range of 5.0 to 6.5. The 50:50 mixing ratio for both Type I and Type Il increased the water holding capacity by about 20% compared with control groups.