The Blast Furnace in Valheim is a mid-game structure required to progress as you venture into harder biomes. It is used to process certain raw materials into Metal, using Coal as a fuel source. If you're wondering, you can store Coal (20 at a time) to keep the heat up. It can hold 10 Ores to process one after the other.
Aside from processing materials, it will also keep your character warm if you're near it. It is a good substitute for a Campfire and will come in handy once the Deep North biome is added to the game.
On that note, here's how to unlock the Black Furnace in Valheim (spoiler alert - it will take some time and effort).
How to get the Blast Furnace in Valheim

To get the Blast Furnace, you must first conquer the Mountains (fourth) biome. It is cold, filled with dangers, and is home to a not-so-friendly Drake called Moder, the mother of Drakes. It is also a boss that you must defeat to progress to the Plains.
Upon defeating her, you will be rewarded with Dragon Tears that can be used to build the Artisan Table. This is one of the important structures you will build, as towards the late-game, when upgraded, it will allow you to craft the mighty Drakkar, giving you unimpeded access to the Ashlands.
Coming back to the Blasting Furnace, you can build this structure once your Artisan Table is complete. You will need the following resources to do so:
- Stone (x20)
- Surtling core (x5)
- Iron (x10)
- Finewood (x20)
Once built, you can smelt materials, such as Black Metal Scrap and Flametal Ore. Black Metal is used to create weapons and for construction. Flametal Ore has similar uses, but is more of an end-game resource. It can be used to craft powerful items, such as the Trollstav.
Blast Furnace vs Smelter: Which one is better?

In Valheim, the concept of better doesn't always come into play. While the Blast Furnace is arguably more useful towards the end-game, the Smelter is just as important during the early stages when you reach the Swamp biome. Being able to smelt Iron Ore will allow you to reach Moder, which in turn will ultimately lead to the Blast Furnace being created.
In short, as you progress, you will need both of these structures to ensure you can smelt Iron, Black Metal, and Flanmetal. This is because the Smelter can't process the late-game resources, and the Blast Furnace can't process the early-game resources. A bit of a conundrum, but I suppose it wouldn't be a survival game without these tricky mechanics.
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