NoviqTech (ASX: NVQ) has entered into a binding agreement to acquire 90% of Coralia Pty Ltd, an institutional-scale Australian biochar carbon dioxide removal (CDR) company, for initial consideration of $500,000 in scrip. The NoviqTech Coralia Biochar Acquisition positions the company to capitalise on surging demand for high-integrity carbon removal credits driven by AI data centre expansion. The company has secured $1.5M in fully committed capital raising at $0.02 per share to fund the acquisition and working capital requirements.
NoviqTech secures foothold in biochar carbon removal with Coralia acquisition
The binding acquisition agreement transforms NoviqTech from a pure digital infrastructure provider into an integrated carbon removal platform. Coralia’s biochar CDR operations focus specifically on serving data centres and AI hyperscaler customers seeking to offset carbon emissions from energy-intensive computing operations.
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 shift is expected to drive multi-decade demand for biochar carbon removal credits, with Australia positioned as an emerging Asia-Pacific data centre hub.
The acquisition provides NoviqTech with a direct revenue pathway in 2026, as Coralia targets first offtake revenues from its Great Barrier Reef biochar project this year. The company has raised $1.5M through a placement of 75 million shares at $0.02 each, together with one free attaching option exercisable at $0.20 (expiry 5 March 2028) for every two placement shares issued.
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, Chief Executive Officer.
Why data centres are driving a biochar supercycle
Biochar carbon dioxide removal involves heating organic material (such as wood waste or agricultural residue) in the absence of oxygen, a process known as pyrolysis. This converts the biomass into a stable carbon-rich form that locks carbon away for hundreds of years, preventing it from returning to the atmosphere.
Data centres present a structural demand driver for biochar CDR credits. As AI workloads intensify, hyperscale operators require increasing electricity to power computational infrastructure. The resulting carbon emissions must be offset to meet corporate net-zero commitments, creating sustained demand for high-integrity carbon removal solutions.
Australia’s position as an emerging regional data centre hub amplifies this opportunity. The projected increase from 6% to 11% of east coast grid demand by 2040 suggests a multi-decade tailwind for biochar CDR providers. AI hyperscalers increasingly prioritise carbon removal credits with verified permanence and environmental co-benefits, characteristics that biochar can deliver when properly certified.
For investors, this positions the NoviqTech Coralia Biochar Acquisition within a market experiencing structural rather than cyclical growth. The permanence of biochar carbon sequestration (measured in centuries) and the expanding regulatory frameworks around carbon accounting create a defensible value proposition.
Great Barrier Reef project unlocks scale and premium positioning
Coralia’s flagship project targets conversion of 2 million tonnes of invasive tree species (including woody weeds) in North Queensland into biochar. These invasive species currently cost the Australian agriculture industry $390 billion, according to CSIRO research, whilst also increasing sediment runoff that damages the Great Barrier Reef ecosystem.
The project’s environmental co-benefits create potential for premium carbon credit pricing. By addressing multiple environmental challenges simultaneously, Coralia’s biochar CDR credits may command higher prices than standard carbon removal products. The company is in advanced negotiations regarding additional project sites, which could support future scale across three project locations.
Subject to certification and operational execution, the scale potential positions Coralia among larger global biochar CDR producers. The project’s direct connection to Great Barrier Reef protection provides a compelling narrative for corporate purchasers seeking carbon removal credits with verified environmental impact beyond pure sequestration.
Key Project Co-Benefits:
- Carbon removal and long-term sequestration
- Reduced sediment runoff protecting Great Barrier Reef water quality
- Agricultural land productivity improvement through invasive species removal
- Premium credit pricing supported by verified environmental outcomes
Dual revenue streams enhance commercial model
Beyond carbon removal credit sales, Coralia can generate secondary revenue through physical biochar product sales. Biochar serves as a valuable input for decarbonising cement and insulation materials, applications directly relevant to data centre construction.
This dual monetisation pathway creates optionality. If biochar spot prices exceed bundled CDR credit pricing, Coralia can optimise revenue by directing production toward physical sales. Conversely, when credit markets offer superior economics, the company retains flexibility to prioritise CDR credit generation.
For data centre customers specifically, the ability to source both carbon removal credits and construction materials from a single biochar platform presents procurement efficiency. This vertical integration potential differentiates the NoviqTech Coralia Biochar Acquisition from pure-play carbon credit platforms.
Acquisition structure and pathway to completion
The binding agreement structures consideration across three milestone-based tranches, aligning vendor incentives with execution delivery. Coralia founder Timothy Brooks will join the NoviqTech board as Executive Director upon completion, signalling operational commitment to the biochar CDR strategy.
| Consideration Stage | Equity Value | Trigger | Securities | Escrow |
|---|---|---|---|---|
| Initial (90% stake) | $500,000 | Completion | Shares at $0.02 plus 1 option per 2 shares | 50% for 6 months, 50% for 12 months |
| Tranche 1 (5%) | $250,000 | Puro.earth approval plus trial biochar production | Shares at 10% discount to 10-day VWAP plus options | Same escrow terms |
| Tranche 2 (5%) | $500,000 | $5M in binding offtake agreements | Shares at 10% discount to 10-day VWAP plus options | Same escrow terms |
The milestone structure ensures material value delivery before full consideration is paid. Tranche 1 requires both Puro.earth preliminary assessment approval and successful trial biochar production meeting certification standards. Tranche 2 depends on securing $5M in binding offtake agreements, providing revenue visibility before the final 5% equity transfer.
All consideration securities are subject to escrow, with 50% escrowed for 6 months and 50% for 12 months from issue. This provides vendor interest alignment with shareholder value creation during the critical integration and commercialisation phase.
Capital raising terms
NoviqTech received binding commitments for $1.5M through issue of approximately 75 million shares at $0.02 per share. The placement price represents a 15% discount to the last close price of $0.023 on 22 January 2026, and a 6.6% discount to the 15-day volume weighted average price of $0.02142.
The placement includes free attaching options exercisable at $0.20 with expiry on 5 March 2028, issued on a one-for-two basis. These attaching options provide upside participation for new investors if NoviqTech executes its biochar CDR strategy successfully.
Placement Structure:
- Tranche 1: 70,217,470 shares issued under existing placement capacity (ASX Listing Rules 7.1 and 7.1A)
- Tranche 2: 4,782,530 shares plus 37,500,000 attaching options subject to shareholder approval at March 2026 EGM
- Settlement dates: Tranche 1 on 3 February 2026, Tranche 2 following March 2026 shareholder meeting
Use of Funds:
- Coralia project development including production trials and Puro.earth certification
- Carbon Central platform expansion for carbon removal and energy transition use cases
- Fuel Central and Book-and-Claim capability scaling
- Integration activities and general working capital
Peak Asset Management and Prenzler Group acted as joint lead managers, entitled to a 6% capital raising fee. Current director Niv Dagan has elected to convert amounts owing for shareholder loans, accrued director fees and placement fees into fully paid ordinary shares on the same terms, subject to shareholder approval.
What comes next for NoviqTech
The NoviqTech Coralia Biochar Acquisition establishes clear near-term milestones for investors to monitor. Completion of the initial 90% acquisition depends on shareholder approval at the March 2026 EGM, with first revenues from the Great Barrier Reef project targeted this year.
Puro.earth certification represents the critical quality gateway. Preliminary assessment approval, combined with successful trial biochar production, triggers the first 5% tranche payment and validates the technical pathway to commercial-scale credit generation. The $5M offtake agreement threshold for the final 5% tranche provides early visibility on customer demand and pricing dynamics.
For investors, the acquisition positions NoviqTech across two structural growth themes: AI-driven data centre expansion and corporate carbon removal requirements. The integrated platform spanning digital infrastructure (Carbon Central) and physical carbon removal assets (Coralia) creates strategic optionality as both markets mature.
Key Milestones to Monitor:
- Completion of acquisition following March 2026 shareholder approval
- Puro.earth preliminary assessment approval for Great Barrier Reef project
- Trial biochar production meeting certification standards
- First commercial offtake agreements announced
- Additional project site acquisitions (three sites targeted)
The biochar CDR market remains in early-stage growth, with pricing, certification standards and corporate procurement practices still evolving. NoviqTech’s exposure through Coralia provides participation in this emerging market whilst maintaining its core digital infrastructure business through Carbon Central, Fuel Central and NoviqAI platforms.
Timothy Brooks’ appointment as Executive Director upon completion signals operational focus on biochar strategy execution. His base salary of $200,000 per annum (plus superannuation) establishes clear accountability, with performance rights and bonus arrangements to be determined post-completion based on delivery against the milestones outlined above.
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