Torrefaction is an effective pathway for microalgal solid biofuel upgrading, and alkali metal activation is also an efficient method to enhance fuel properties. This study explores the comparison of torrefaction alone and KOH activation combined with torrefaction to determine a better operation for biochar production from the microalga Nannochloropsis Oceanica. The results indicate that the HHV ranges of KOH-activated biochar and unactivated biochar are 25.611–32.792 MJ·kg−1 and 25.024–26.389 MJ·kg−1, respectively. Furthermore, KOH-activated biochar is better than unactivated biochar, with less residue, broader pyrolysis and combustion temperature ranges, higher elemental carbon, and less combined carbon. Moreover, KOH-activated biochar is close to the unactivated one from the viewpoint of expense calculation and life cycle assessment and thus possesses a better comprehensive performance. Overall, KOH activation is an efficient method for upgrading microalgal solid biofuel. The results are conducive to exploring further modification of microalgal solid biofuel production with better properties, thus leading to a greener and more efficient approach for upgrading fuel performance.