Real hardwood charcoal is probably your best bet for a solid fuel forge. Unfortunately it takes a lot of wood to make an appreciable amount, and rapid deforestation eventually lead to the use of charcoal as a cheap alternative.
Interestingly enough, real barbeque connoseurs tend to prefer real 100% hardwood charcoal to the preformed filler made brickett type as well.
Your interests and your parents interests could thus both be served by making this project properly, and using real charcoal for both.
Insofar as combining the two purposes, you are going to have to make certain sacrifices, as the design requirements of the two are not identical, but on the other hand, neither are they so far apart as to be mutually exclusive.
You could hang the firebox under the lower grill where the charcoal normally sits, and have a removeable top to the firebox. If you wat to be coocking food, put the top on the box, install the top grill for the food, and you've got a normal charcoal grill. Time to forge? great, take off the top grill and the firebox lid, stoke up the blower, and forge away!