For this achievement you need to smelt a block of wood using CHARCOAL to make more charcoal.
It doesn't matter which type of wood you use. (I used jungle wood as it was in my possession already) Firstly you have to smelt wood using either coal or a wooden plank and that will give you charcoal. Then let that burn out and in the Fuel box place the charcoal you just got and a block of wood in the Ingredient box.
As soon as the wood has finished burning and you take the charcoal out of the furnace the achievement should pop.
Edit: As of 20/02/17 this achievement is currently glitched. According to Kugare the latest title update has caused this achievement to glitch and become unlockable. Once I hear of a change I'll update the guide.Edit 2: Kugare and Gensui Akainu can confirm the glitch has been fixed. Kugare says "I finally unlocked this achievement. I simply used 3 pieces of wood: put 2 pieces in the 2 slots... placed the created charcoal in the fuel box and the last piece of wood in the upper box. Let the furnace cooldown (maybe optional, but that's what i did) and VERY important: Use
to remove the created charcoal. Don't use
or the achievement don't unlock."
Thank you for the information!
If you down vote please comment why so I can fix the solution. Hope this helps!