Activated charcoal is physically different from normal one. It has lots and lots of pores. It means that for a unit of volume it has lots and lots of area, which offer lots and lots of potential points, where chemical or physical reactions can take place.
In industry it is made by carbonisation (heating carbon-rich material in about 600 C degrees in inert atmosphere – complete lack of oxygen) followed with activisation (treating with for example steam in 900 C degrees).
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