NoviqTech Acquires 90% of Coralia Biochar for $1.5M Targeting 2025 Revenues

NoviqTech (ASX: NVQ) has entered into a binding agreement to acquire a 90% stake in Coralia Pty Ltd, an institutional-scale Australian biochar carbon dioxide removal (CDR) company. The NoviqTech Coralia biochar acquisition is funded through a $1.5 million capital raising at $0.02 per share, with the transaction targeting first offtake revenues from Coralia’s Great Barrier Reef biochar project in 2025.

Coralia’s platform focuses on helping data centres and AI hyperscalers mitigate carbon emissions through high-integrity biochar CDR credits. Data centres are projected to account for approximately 6% of total demand in Australia’s east coast electricity grid by 2030, rising to 11% by 2040, according to the Climate Change and Energy Department. This structural demand positions Coralia to become a potential biochar CDR market leader in the Asia-Pacific region, with Australia anticipated as a dominant regional hub for data centres.

The acquisition structure includes an initial $500,000 in shares plus options, with two additional milestone-based tranches worth $250,000 and $500,000 respectively. These tranches are tied to Puro.earth certification milestones and binding offtake agreements totalling $5 million.

Why data centres need biochar carbon removal

Biochar CDR involves converting biomass into a stable form of carbon through pyrolysis, a high-temperature process conducted in the absence of oxygen. The resulting biochar locks carbon away for centuries when applied to soil or used in industrial applications, making it a durable carbon removal solution. Unlike short-term offsets, biochar represents permanent carbon sequestration that meets the rigorous standards required by institutional buyers.

The rapid expansion of AI infrastructure is driving unprecedented electricity demand, with data centres expected to account for 6% of east coast grid demand by 2030 and 11% by 2040. As hyperscalers face mounting pressure to decarbonise operations, high-integrity carbon removal credits have become essential compliance tools. Coralia’s focus on certified biochar CDR directly addresses this institutional demand, positioning the company at the intersection of AI infrastructure growth and carbon removal requirements.

Australia’s emergence as a dominant APAC data centre hub amplifies this opportunity. The country’s renewable energy capacity, geographic stability, and regulatory framework make it an attractive location for hyperscale facilities, creating a concentrated demand pool for locally-produced carbon removal credits.

CEO Commentary

“The acquisition of Coralia strengthens NoviqTech’s participation in the biochar carbon removal market while reinforcing the role of Carbon Central as open, trusted digital infrastructure. Coralia provides an anchor project that complements our platform, allowing us to support the growing global demand for high-integrity biochar CDR from data centres and other large emitters, while continuing to work with a broad range of independent biochar and carbon removal project developers,” said Freddy El Turk, CEO of NoviqTech.

Coralia’s Great Barrier Reef project pipeline

Coralia’s North Queensland project converts 2 million tonnes of invasive woody weeds into biochar, addressing multiple environmental challenges simultaneously. Invasive species cost the Australian agriculture industry $390 billion annually according to CSIRO, while also increasing sediment runoff into the Great Barrier Reef. By removing these species and converting them into stable carbon, Coralia’s project delivers co-benefits that could command premium pricing in carbon markets.

The project is targeting first offtake revenues in 2025, providing a near-term pathway to commercialisation. Coralia is also in advanced negotiations regarding additional project sites, with the potential to scale operations across three sites. If executed, this expansion could position Coralia as one of the larger biochar CDR producers globally, subject to certification and operational performance.

The dual environmental benefit distinguishes Coralia’s credits from generic carbon offsets. By addressing agricultural productivity losses and reef sediment issues alongside carbon removal, the project appeals to buyers seeking co-benefits beyond simple carbon accounting. This differentiation is particularly relevant for data centre operators facing stakeholder scrutiny over environmental impact.

Key project characteristics:

1. Feedstock source: 2 million tonnes of invasive woody weeds in North Queensland providing low-cost, abundant biomass.

2. Co-benefits: Protection of $390 billion agriculture sector and reduction of Great Barrier Reef sediment runoff.

3. Revenue timeline: Targeting first offtake revenues in 2025.

4. Scale potential: Advanced negotiations for additional sites supporting potential three-site operation.

Dual revenue streams and commercial pathway

Coralia’s business model generates revenue through two channels. The primary revenue stream comes from sales of certified biochar CDR credits, which represent the carbon removal attribute of the biochar production process. These credits are sold to corporate buyers, particularly data centres and hyperscalers, seeking to offset residual emissions.

The secondary revenue stream involves sales of the physical biochar product itself. Biochar can be used in data centre construction as an input for decarbonising cement and insulation elements, creating a direct commercial link between the carbon removal activity and the infrastructure generating the demand. This dual model reduces execution risk by providing multiple paths to monetisation.

Coralia is pursuing certification through Puro.earth, a leading biochar carbon removal registry. Puro.earth certification serves as a quality benchmark, providing independent verification that credits meet durability, additionality, and measurement standards required by institutional buyers. The certification pathway is structured into two milestones: preliminary assessment approval and successful trial biochar production meeting Puro.earth standards.

Acquisition structure and milestone payments

The NoviqTech Coralia biochar acquisition is structured in three tranches, aligning seller incentives with execution milestones. The initial 90% stake is acquired through $500,000 in shares issued at $0.02, together with one NVQOA option for every two shares issued. This tranche is conditional on NoviqTech raising a minimum of $1 million in equity, which has been satisfied through the placement.

The remaining 10% is acquired through two milestone-based tranches. Tranche 1 delivers a 5% stake for $250,000 in shares plus options, issued at a 10% discount to the 10-day volume-weighted average price (VWAP). This tranche is triggered upon receipt of Puro.earth preliminary assessment approval and successful production of trial biochar meeting Puro.earth standards.

Tranche 2 delivers the final 5% stake for $500,000 in shares plus options, also issued at a 10% discount to 10-day VWAP. This tranche is triggered upon Coralia entering into binding biochar or biochar CDR offtake agreements with a minimum aggregate value of $5 million. All consideration securities are subject to escrow, with 50% escrowed for six months and 50% escrowed for 12 months from issue.

Coralia founder Timothy Brooks will join the NoviqTech board as Executive Director to lead biochar CDR strategy, with a base salary of $200,000 per annum plus superannuation. The appointment takes effect upon completion of the 90% acquisition. Performance rights and bonus arrangements are to be determined post-completion.

Capital raising and use of funds

NoviqTech has received binding commitments to raise $1.5 million at $0.02 per share, representing a 15% discount to the last close price of 22 January 2026 ($0.023) and a 6.6% discount to the 15-day VWAP ($0.02142). The placement includes one free attaching listed option exercisable at $0.20 with an expiry of 5 March 2028 for every two placement shares subscribed.

The placement is structured in two tranches. Tranche 1 comprises 70.2 million shares issued under ASX Listing Rules 7.1 (42.1 million shares) and 7.1A (28.1 million shares), which do not require shareholder approval. Tranche 2 comprises 4.8 million shares plus 37.5 million attaching options, subject to shareholder approval at an extraordinary general meeting proposed for early March 2026.

Current director Niv Dagan has elected to convert amounts owing to him in respect of a shareholder loan, accrued director fees, and placement fees into fully paid ordinary shares on the same terms as the placement, subject to shareholder approval in accordance with ASX Listing Rule 10.11. Peak Asset Management Pty Ltd and Prenzler Group Pty Ltd acted as joint lead managers to the placement.

Use of funds allocation:

• Coralia project development, including production trials, certification activities, and offtake discussions.

• Carbon Central digital infrastructure expansion to support carbon removal and environmental attribute markets.

• Fuel Central and Book-and-Claim platform scaling, including enhancements, market onboarding, and commercial development.

• Integration activities, selective business development, and working capital to support group execution.

Investment thesis and what comes next

The NoviqTech Coralia biochar acquisition represents a strategic entry into the biochar CDR market at a time when structural tailwinds are building. Data centre electricity demand projections create a multi-decade requirement for high-integrity carbon removal, with Australia positioned as a regional hub. Coralia’s project addresses this demand through a dual revenue model, leveraging abundant low-cost feedstock with environmental co-benefits.

The milestone-based acquisition structure protects NoviqTech shareholders by tying 40% of the total consideration to certification and commercial validation. This de-risks the transaction while maintaining alignment between sellers and buyers through staged payments linked to execution.

The integration of Coralia with NoviqTech’s Carbon Central platform provides digital infrastructure for tracking, verifying, and trading biochar CDR credits. This combination of physical project assets and digital marketplace capabilities positions the company to capture value across the carbon removal supply chain.

Near-term catalysts:

• Extraordinary general meeting approval (March 2026) for Tranche 2 placement shares and attaching options.

• Puro.earth preliminary assessment approval triggering Tranche 1 acquisition milestone.

• Trial biochar production meeting Puro.earth standards.

• First offtake revenues from Great Barrier Reef biochar project (targeting 2025).

• Additional project site announcements supporting potential three-site scale.

The transaction provides NoviqTech with a funded pathway into a high-growth market, backed by tangible near-term milestones and a clear commercial roadmap. With data centre demand accelerating and institutional buyers seeking durable carbon removal solutions, Coralia’s focus on certified biochar CDR positions the company at the centre of a structural market opportunity.

Want to Explore NoviqTech’s Biochar Carbon Removal Strategy Further?

NoviqTech’s acquisition of Coralia positions the company at the intersection of AI infrastructure growth and institutional carbon removal demand, with first revenues targeting 2025. The milestone-based structure ties payments to Puro.earth certification and commercial validation, de-risking execution whilst maintaining alignment.

For comprehensive details on the transaction structure, project pipeline, and digital infrastructure integration, visit the NoviqTech investor centre to access the full announcement and company briefings.