This study investigates the environmental and economic impact of integrating hydrothermal carbonization (HTC) in horse farms to produce hydrochar with potential environmental and economic benefits as a fertilizer. The results indicate that HTC has the potential to reduce greenhouse gas emissions and eutrophication impacts compared to traditional methods. Despite the high CAPEX making the HTC integration economically unfeasible, the system can become viable if hydrochar is used instead of purchased fertilizers and if the capital investment is reduced by 54%. To realize these environmental and economic benefits, financial support to lower the initial investment will be required. In addition, further R&D and increased demand for small-to-medium scale HTC can reduce capital cost.