NoviqTech Limited has secured a controlling stake in Coralia, an Australian biochar carbon removal company, positioning itself at the forefront of the rapidly expanding carbon dioxide removal market driven by data centre growth.
- Acquisition of 90% of Coralia Pty Ltd, a biochar carbon removal firm
- Capital raise of $1.5 million to fund acquisition and working capital
- Coralia’s Great Barrier Reef biochar project targets 2 million tonnes of invasive species conversion
- Appointment of Coralia founder Timothy Brooks as NoviqTech executive director
- Potential for significant carbon credit generation and biochar sales in Asia-Pacific
Strategic Expansion into Biochar Carbon Removal
NoviqTech Limited (ASX, NVQ) has taken a decisive step to broaden its environmental services portfolio by entering a binding agreement to acquire 90% of Coralia Pty Ltd, an Australian company specialising in biochar carbon dioxide removal (CDR). This move aligns NoviqTech with the burgeoning biochar market, which is gaining momentum due to the rapid expansion of data centres and artificial intelligence infrastructure, both significant contributors to carbon emissions.
Coralia’s flagship project in North Queensland focuses on converting invasive woody weed species into biochar, a form of carbon-rich charcoal that sequesters carbon dioxide. This initiative not only addresses carbon removal but also tackles ecological challenges affecting the Great Barrier Reef by reducing sediment runoff caused by invasive plants.
Market Opportunity and Project Pipeline
Data centres are projected to consume an increasing share of Australia’s east coast electricity grid, up to 11% by 2040, highlighting the urgency for effective carbon mitigation solutions. Coralia’s biochar platform is well-positioned to capitalise on this trend, with the potential to generate substantial carbon removal credits subject to certification and market conditions. The company is also exploring additional project sites, which could triple its operational scale.
Beyond carbon credits, Coralia anticipates revenue from biochar sales, which have applications in decarbonising cement and insulation materials used in new data centre construction. This dual revenue stream enhances the commercial viability of the acquisition.
Capital Raising and Leadership Integration
To finance the acquisition and support ongoing operations, NoviqTech is raising $1.5 million through a placement priced at $0.02 per share, accompanied by listed options exercisable at $0.20. The capital will fund Coralia’s production trials, certification processes, and early commercial offtake discussions, as well as the expansion of NoviqTech’s digital infrastructure platforms.
Coralia’s founder, Timothy Brooks, will join NoviqTech’s board as an executive director, bringing his expertise to steer the company’s biochar CDR strategy. This leadership integration underscores NoviqTech’s commitment to embedding Coralia’s capabilities within its broader environmental ecosystem.
Looking Ahead
The acquisition positions NoviqTech to become a key player in the Asia-Pacific biochar carbon removal market, which is expected to experience a multi-decade growth cycle driven by AI and data centre demand. However, the success of this venture hinges on achieving certification milestones, operational performance, and securing binding offtake agreements.
As NoviqTech advances its strategy, investors will be watching closely for progress on certification approvals and commercial partnerships that will validate the company’s growth potential in this emerging sector.
Bottom Line?
NoviqTech’s bold acquisition could redefine its role in carbon removal, but execution risks remain as certification and market uptake unfold.
Questions in the middle?
- How soon will Coralia’s biochar projects achieve certification and start generating carbon credits?
- What are the terms and potential scale of the binding offtake agreements currently under negotiation?
- How will NoviqTech integrate Coralia’s operations with its existing digital infrastructure platforms?