NoviqTech’s subsidiary Coralia has secured a strategic MOU for biochar carbon credit offtake and launched a research partnership on low-carbon concrete, while completing a key operational trial at its Great Barrier Reef project.
- Strategic MOU with A Healthier Earth for 70% biochar credit offtake
- Research partnership with Swinburne University on biochar in concrete
- Field and pyrolysis trial completed for invasive tree biomass
- Conditional sale of NVQ Services assets under ASX review
- Operating cash outflow of A$704,000 with 3.27 quarters funding
Strategic Offtake MOU Targets Majority of Biochar Credits
NoviqTech Limited (ASX:NVQ) has taken a significant step in commercialising its biochar carbon removal ambitions through a 12-month Strategic Memorandum of Understanding (MOU) between its subsidiary Coralia and A Healthier Earth (AHE), the R&D arm of hyperscale data centre developer Pure Data Centres Group. The MOU commits AHE to assess a binding offtake for at least 70% of the Biochar Carbon Removal Credits generated by the Great Barrier Reef Biochar Project, which aims to convert 2 million tonnes of invasive woody weeds and agricultural waste into approximately 550,000 carbon removal credits over the project’s lifetime.
This arrangement signals a potential long-term revenue stream from carbon credits, with Coralia and AHE planning to replace the MOU with detailed Heads of Terms. These could cover direct sales of the credits and explore a joint venture to build a biochar production facility at the project site, indicating a move towards vertical integration and operational scaling.
Research Partnership Explores Low-Carbon Concrete Applications
Complementing its carbon removal efforts, Coralia has entered a research partnership with Swinburne University of Technology to investigate the use of biochar derived from invasive Chinese apple trees in low-carbon concrete specifically designed for data centre construction. Phase 1 of this project, which commenced after the quarter ended, will focus on incorporating biochar into non-structural concrete and landscaping materials. This initiative addresses the significant environmental footprint of concrete and cement, responsible for 8% of global emissions, and could establish a dual revenue model through both carbon credits and physical biochar applications.
Operational Trial Validates Feedstock and Process
In late May, Coralia completed a comprehensive field and pyrolysis trial at its flagship Great Barrier Reef Biochar Project in North Queensland. The trial involved harvesting and chipping invasive Chinese Apple trees, converting the biomass into high-quality biochar through pyrolysis testing at the Pyrocal facility in Toowoomba. This trial aims to validate the operational feasibility, feedstock quality, environmental performance, and carbon removal efficacy of the process. The data collected will inform pilot facility design with engineering partner TFA Project Group and support regulatory and certification pathways. Pyrolysis testing results are expected by mid-August.
Asset Sale and ASX Suspension Discussions Continue
During the quarter, NoviqTech entered into a conditional term sheet to sell its NVQ Services assets to Renaissance, reflecting a strategic focus on its biochar business. The company remains suspended from ASX quotation and is actively engaging with the exchange regarding the proposed transaction and conditions for reinstatement. This ongoing dialogue highlights regulatory considerations impacting NoviqTech’s market presence and liquidity.
Financial Position and Funding Runway
NoviqTech reported an operating cash outflow of A$704,000 for the quarter, with net cash used in operations at A$601,000. Financing activities provided a net inflow of A$66,000, including proceeds from equity issues, partially offset by loan repayments. At quarter end, the company held A$567,000 in cash and had unused financing facilities of A$1.4 million, providing a total available funding of approximately A$1.97 million. This equates to an estimated funding runway of 3.27 quarters at current operating cash flow levels, offering a modest buffer as the company advances its projects and negotiations.
Bottom Line?
NoviqTech’s strategic partnerships and trial completions position it well in the emerging biochar carbon removal market, but upcoming pyrolysis results and ASX reinstatement will be critical near-term milestones.
Questions in the middle?
- Will the pyrolysis trial results validate the scalability and carbon integrity of Coralia’s biochar production?
- How will the potential joint venture with A Healthier Earth reshape NoviqTech’s operational footprint and revenue streams?
- What conditions will the ASX impose for NoviqTech’s reinstatement, and how might this affect investor confidence?