This study aimed to produce biochar with an energy value in the range of sub-bituminous carbon by investigating the effect of oxidative and non-oxidative torrefaction on the torrefaction yield and fuel properties of wheat straw. Three independent variables were considered at different levels: temperature (230, 255, 280, 305 °C), residence time (20, 40, 60 min), and reaction atmosphere (0, 3, 6 vol% O2; N2 balance); and three dependent variables: mass yield, energy yield, and percentage increase in higher heating value (HHV). The results showed that it is possible to produce a sub-bituminous carbon type C biochar using oxidative torrefaction, significantly reducing time and temperature compared with non-oxidative torrefaction. The optimum torrefaction conditions were 287 °C−20 min−6.0% O2, which increased the HHV of wheat straw from 13.86 to 19.41 MJ kg−1. The mass and energy yields were 44.11 and 61.78%, respectively. The physicochemical and fuel properties of the obtained biochar were improved compared with the raw biomass. The atomic O/C ratio was reduced from 1.38 to 0.86. In addition, the hydroxyl groups in the lignocellulosic structure decreased and the hemicellulose content decreased from 26.08% to 1.61%. This improved grindability, thermal stability, porosity, and hydrophobicity.