In this study, the thermal treatment of two types of waste from the paper industry was investigated, paper mill sludge and sewage sludge from biological wastewater treatment plants. Hydrothermal carbonisation (HTC) and torrefaction were investigated as sustainable alternatives for solid biofuel production. Untreated samples and samples chemically pre-treated with alcoholic vinegar were subjected to torrefaction at 350 °C in N2 atmosphere, and the exhaust gases were analysed. HTC was performed at 250 °C with a residence time of 4 h. The feedstocks and the biochars produced were characterised by different analytical methods, and the effects of pre-treatment on fuel properties were studied. Both processes, HTC and torrefaction, showed inspiring results in the production of biofuels from paper industry wastes under the tested experimental conditions. A positive influence of pre-treatment on fuel properties (higher heating value, carbon content) of the obtained char was observed, and changes in the gas phase during torrefaction were observed.