From a Naked Whiz FAQ:
Which is better, lump or briquettes? -- Well, this FAQ is about lump charcoal, so we aren't going to wax eloquent about briquettes. But admit it. You really want to know what is in Kingsford briquettes, don't you? Well, according to Kingsford, here is what is in their briquettes and what each ingredient is used for: wood char (heat source), mineral char (heat source), mineral carbon (heat source), limestone (uniform visual ashing), starch (binder), borax (press release), sodium nitrate (ignition aid), sawdust (ignition aid). If you hang out on any of the barbecue forums on the internet, you will find lots of folks complaining about the borax and coal and limestone. You don't often hear of people complaining about the mineral char. What is mineral char? "A soft, brownish-black coal in which the alteration of vegetable matter has proceeded further than in peat but not as far as in bituminous coal. Also called brown coal. Has empyreumatic smell." What is an empyreumatic smell? "The peculiar smell and taste arising from products of decomposition of animal or vegetable substances when burnt in close vessels." Nuff said?
But back to the question at hand. Should you use lump or briquettes? There is no one answer for everyone. If you are using a ceramic cooker, the low ash production of lump charcoal is very important. Ceramic cookers have a fire bowl holding the charcoal. As the charcoal burns, the ash falls down into the bottom of the bowl. There isn't room for a whole lot of ash.
Lump charcoal burns hotter and faster than briquettes,
if given an unlimited air supply. If you can control the air flow through your cooker, lump will burn at whatever rate and temperature that you allow it to. If you can't control the air flow in your cooker, then you may need to use the slower-burning briquettes in order to keep temperature under control.
Another consideration is that briquettes tend to be cheaper than lump charcoal.
The whole FAQ is posted
here.