NoviqTech (ASX: NVQ) has entered into a binding agreement to acquire a controlling 90 per cent interest in biochar specialist Coralia as it expands its platform into large-scale carbon dioxide removal (CDR) and data centre sustainability.
The acquisition positions NoviqTech to address rising carbon emissions from data centres and AI infrastructure by combining physical biochar carbon removal with its existing digital reporting and verification capabilities.
NoviqTech said Coralia provides an anchor project that complements its Carbon Central platform while creating a pathway to near-term revenue from biochar carbon removal credits and related products.
The Climate Change and Energy Department is forecasting that data centres will account for approximately 6 per cent of total demand in Australia’s east coast electricity grid by 2030, and 11 per cent by 2040.
This is expected to create a multi-decade biochar CDR supercycle, with Australia anticipated to be a dominant regional hub for Data Centres and Coralia the potential biochar CDR market leader in the Asia-Pacific.
Coralia Acquisition Rationale
Coralia’s platform targets the conversion of invasive tree species in North Queensland into biochar, with the potential to generate carbon removal credits subject to certification, operational performance and market conditions.
NoviqTech said the strategy addresses both carbon removal and environmental co-benefits, including reduced sediment runoff affecting the Great Barrier Reef and mitigation of invasive species that impose significant costs on Australian agriculture.
Coralia is targeting first offtake revenue from its Great Barrier Reef biochar project during the current year, providing NoviqTech with exposure to near-term commercial outcomes.
In addition to carbon removal credits, Coralia’s model includes potential secondary revenue streams from the sale of biochar for use in construction materials such as cement and insulation for data centre developments.
NoviqTech said Coralia is in advanced discussions regarding additional project locations that could support expansion to three operating sites over time.
Transaction Structure And Milestones
The initial 90 per cent acquisition will be satisfied through the issue to Coralia’s vendors of $500,000 in NoviqTech shares at $0.02 per share, together with options issued on a one-for-two basis.
The remaining 10 per cent interest will be acquired through milestone-based scrip consideration linked to certification outcomes, successful trial biochar production, and the execution of binding offtake agreements with a minimum aggregate value of $5 million.
All consideration securities issued will be subject to escrow arrangements, with staged releases over six and twelve months, with completion of the acquisition conditional on NoviqTech raising a minimum of $1m in equity.
On completion of the initial acquisition, Coralia founder Timothy Brooks will join the NoviqTech board as an executive director to lead the group’s biochar carbon removal strategy.
$1.5m Capital Raising
NoviqTech has received binding commitments to raise $1.5 million through a placement at $0.02 per share to fund the acquisition and provide additional working capital.
The placement will support the advancement of Coralia’s initial biochar project through production trials, certification processes and early commercial offtake discussions.
Funds will also be allocated to the continued expansion of NoviqTech’s digital infrastructure, including platform development across fuels, carbon removal, and environmental attribute markets.
NoviqTech said the transaction strengthens its position across both physical carbon removal and digital market infrastructure as demand for high-integrity carbon solutions accelerates alongside growth in data centres and AI workloads.
