The low energy density of biomass is a crucial limitation for their application in the steel industry. This study used catalyst-catalysed hydrothermal carbonization (HTC) to prepare higher-quality hydrochar from biomass. The effects of acid-base homogeneous catalysts (Fe(NO3)3·9H2O and CaO), liquid phase product (circulating water) and carbonization temperatures on the physicochemical properties and microscopic morphology of hydrochars were investigated. The results showed that higher carbonization temperature, circulating water and Fe(NO3)3·9H2O all raised the higher heating value (HHV) of hydrochar. When 4% of Fe(NO3)3·9H2O was added, the HHV of hydrochar reached 30.05 MJ/kg, which was 1.15 times higher than without catalysts. The above three conditions can also make the ordering degree in the carbonaceous structure lower ordered and enhance the reaction performance of the hydrochar. Meanwhile, the addition of Fe(NO3)3·9H2O at 240 °C can reduce the hydrochar ignition and burnout temperatures and enhance the combustion performance. Moreover, it was demonstrated that circulating water promoted the HTC more than deionized water. In conclusion, adding Fe(NO3)3·9H2O or circulating water to the HTC process can produce higher-quality hydrochar.