Instant Answer.

What type of wood and coal is best to use?

All wood will burn slightly differently, but the most important differences between woods is their moisture content. Until the moisture has been driven off from the wood it will remain below its combustion temperature. When the outer skin has dried and beginning to burn, much of this heat energy will be wasted having to boil off the water remaining in the core of the wood. Copious amounts of water vapour, in all but the most insulated flue, will condense, and mix with the products of combustion to form creosote and other undesirable substances which will eat away the fabric of the flue, and eventually build up to block the flue. At any time this build up of tar will be capable of causing a chimney fire.