8-K: Verde Resources Biochar Asphalt Receives Early NCAT Validation, Paving Way for Nationwide Rollout

Verde Resources' proprietary Cold-Mix Biochar Asphalt has received early performance validation from the National Center for Asphalt Technology, demonstrating resilience and flexibility for low-traffic applications and positioning the company for nationwide commercialization.

Summary

• Verde Resources' Cold-Mix Biochar Asphalt received early performance validation from the National Center for Asphalt Technology (NCAT) after approximately 50,000 Equivalent Single Axle Loads (ESALs) of testing.
• NCAT's initial observations indicate the carbon-sequestering asphalt demonstrated resilience and flexibility under continuous 80-ton truck traffic.
• The material is the first tested at NCAT with a dedicated carbon sequestration component, suitable for low-traffic applications like local roads and residential subdivisions.
• Verde signed a memorandum of understanding with Ergon Asphalt & Emulsions, North America's largest liquid asphalt producer, on May 30, 2025, anticipating a long-term exclusive agreement by September 2025 for nationwide rollout.
• The Biochar-Asphalt was the first in the world to generate verified Carbon Removal Credits, certified by Puro.earth and purchased by a major global financial institution, announced in April 2025.
• The company considers this validation a material event due to its independent nature, role in accelerating commercial adoption, and implications for sustainable infrastructure and mitigating Scope 1, 2, and 3 emissions.

Sentiment

Score: 9

Explanation: The filing presents overwhelmingly positive news, including independent validation of a unique, climate-positive product, a significant partnership with a major industry player, and successful generation of carbon credits. The only minor limitation is the current validation for low-traffic applications, but long-term testing is ongoing.

Positives

• Early performance validation from NCAT confirms the durability and resilience of the Cold-Mix Biochar Asphalt.
• The material is the first tested by NCAT with a dedicated carbon sequestration component, highlighting its innovative climate-positive nature.
• Demonstrated suitability for low-traffic applications after 50,000 ESALs of heavy 80-ton truck traffic.
• Secured a Memorandum of Understanding with Ergon Asphalt & Emulsions, the largest liquid asphalt producer in North America, for a potential long-term exclusive agreement by September 2025.
• Successfully generated the world's first verified Carbon Removal Credits from asphalt, certified by Puro.earth and purchased by a major global financial institution.
• The technology actively mitigates Scope 1, 2, and 3 emissions across the construction value chain.

Negatives

• The early validation currently confirms suitability only for low-traffic applications, with long-term evaluations ongoing for medium to high-traffic environments.

Risks

• Forward-looking statements involve known and unknown risks, uncertainties, and other factors that could cause actual results to differ materially from those expressed or implied.
• The company undertakes no obligation to update any forward-looking statements, except as required by law.
• Important factors that could cause actual results to differ materially are contained in the company's filings with the SEC.

Future Outlook

Long-term evaluations are ongoing as part of NCAT's multi-year testing cycle to assess viability in medium to high-traffic environments. The company anticipates executing a long-term exclusive agreement with Ergon Asphalt & Emulsions by September 2025 to enable nationwide rollout of its technology, aiming to reimagine road infrastructure as a scalable climate solution and turn roads into carbon sinks.

Management Comments

• "We've had plenty of materials and ideas come through the Test Track over the years, but few show the carbon reduction potential that Verde's Biochar Asphalt does, and it's definitely the first technology on the track with a carbon sequestration component... After nearly 50,000 ESALs of heavy 80-ton truck traffic, the surface remains flexible and has delivered consistent performance. Based on what I've observed to date, this material appears well suited for use in low-traffic applications like local roads and subdivisions." Nathan Moore, Assistant Director for Test Track Research at NCAT.
• "We're still in the early days, but the pace of validation and Nathan's comments are incredibly energizing. Receiving this kind of feedback in less than a year speaks volumes, not just about the strength of our material, but about the extraordinary potential when innovation is powered by both science and purpose." Jack Wong, CEO of Verde Resources.

Industry Context

This announcement positions Verde Resources as a pioneer in the sustainable infrastructure sector, addressing the growing demand for climate-positive construction materials. The development of carbon-sequestering asphalt directly aligns with global efforts to mitigate Scope 1, 2, and 3 emissions and achieve net-zero targets, offering a novel solution for an industry traditionally associated with high carbon footprints. The partnership with Ergon Asphalt & Emulsions, a major industry player, signifies a potential shift towards broader adoption of such innovative technologies in the North American asphalt market.

Comparison to Industry Standards

• Verde's material is the first tested at NCAT's facility with a dedicated carbon sequestration component, distinguishing it from conventional asphalt products.
• The Biochar-Asphalt was the first in the world to generate verified Carbon Removal Credits from asphalt, certified by Puro.earth, setting a new global benchmark for carbon-negative infrastructure materials.
• The proof-of-concept project was completed in partnership with Oregon Biochar Solutions (OBS), demonstrating a successful collaboration model for innovative material development.
• The company aims to transform asphalt from a traditional emitter into a climate-positive material, contrasting with standard industry practices that contribute to greenhouse gas emissions.

Stakeholder Impact

• Shareholders: Positive impact due to significant product validation, potential for increased market adoption, and a major strategic partnership, which could lead to increased revenue and market value.
• Customers (e.g., municipalities, construction companies): Offers an innovative, environmentally friendly, and potentially cost-effective asphalt solution for infrastructure projects, particularly for low-traffic applications.
• Environment: Significant positive impact through carbon sequestration and mitigation of Scope 1, 2, and 3 emissions in the construction sector.
• Industry: Sets a new standard for sustainable roadbuilding and could drive broader adoption of climate-positive materials.

Next Steps

• Ongoing long-term evaluations by NCAT to assess viability in medium to high-traffic environments.
• Finalizing a long-term exclusive agreement with Ergon Asphalt & Emulsions by September 2025.
• Nationwide commercialization of Verde's Biochar-Asphalt technology.

Key Dates

Recommendation

The filing details a significant breakthrough for Verde Resources with independent validation of its unique carbon-sequestering biochar asphalt by NCAT, a highly respected authority. This validation, coupled with the world's first verified carbon removal credits from asphalt and a strategic memorandum of understanding with Ergon Asphalt & Emulsions (the largest liquid asphalt producer in North America), positions the company for substantial commercialization and market leadership in sustainable infrastructure. The technology addresses critical environmental concerns (Scope 1, 2, and 3 emissions) and has the potential to transform the roadbuilding industry. While current validation is for low-traffic applications, the ongoing long-term evaluations and anticipated nationwide rollout indicate strong future growth potential. This confluence of technological innovation, market validation, and strategic partnerships makes Verde Resources a compelling 'strong buy' for investors seeking exposure to the rapidly expanding green infrastructure and carbon credit markets.

Keywords

Biochar Asphalt, Carbon Sequestration, Sustainable Infrastructure, NCAT, Ergon Asphalt & Emulsions, Carbon Removal Credits, Puro.earth, Climate-Positive, Roadbuilding, Green Construction, ESG, VRDR