Fe3O4 nanoparticles with ∼10 nm diameters were synthesized by an extremely low-cost, scalable and relatively biocompatible chemical co-precipitation method. Magnetic measurements revealed that Fe3O4 nanoparticles have bifunctional superparamagnetic and ferromagnetic character with saturation magnetization (Ms) values of 64 and 71 emu g−1 at 298 K and 10 K, respectively. Pseudocapacitive Fe3O4 nanoparticles were then integrated into hazelnut shells - an abundant agricultural biomass - by an energy efficient hydrothermal carbonization method. Presence of magnesium oxide (MgO) ceramic template or its precursor in the hydrothermal reactor allowed simultaneous introduction of pores into the composite structure. Hierarchically micro-mesoporous Fe3O4/C nanocomposite possesses a high specific surface area of 344 m2 g−1. Electrochemical properties of Fe3O4/C nanocomposite were investigated by cyclic voltammetry and galvanostatic charge-discharge measurements in a conventional three-electrode cell. The Fe3O4/C nanocomposite is able to operate in a large negative potential window in 1 M Na2SO4 aqueous electrolyte (−1.2–0 V vs. Ag/AgCl). Synergistic effect of the Fe3O4 and carbon leads to enhanced specific capacitance, rate capability and cyclability making Fe3O4/C nanocomposite a very promising negative electrode material for asymmetric supercapacitors.