It is my understanding that throughout the world and throughout history (and as far back in pre-history as forging goes), charcoal has been THE standard blacksmith's fuel. Remember, in much of the world, coal was thought to be a rather odd material and not used at all. Also, in much of the world before "modern" transportation methods became common, a lot of people didn't even have access to coal.

I have forged small steel pieces in the charcoal starting chimney we use for the BBQ!

So, go for it!