Calix wins $11m from Canberra toward WA low-CO2 project with Adbri

Calix Limited (ASX:CXL) is up nearly 6% in mid-afternoon trade as the company announces its receipt of $11m in funding from Canberra towards the development of its Kwinana-based low-CO2 lime project, which sees Calix partnering with SA’s Adbri Ltd (ASX: ABC), a brick and construction materials manufacturer. 

The funds are to be used for Calix to manufacture a low-emissions kiln to produce lime with a reduced carbon footprint. The lime will be used in the alumina and gold industries through WA, as well as undisclosed “other industries.” 

Calix’s Low Emissions Intensity Lime and Cement (LEILAC) patented technology will be used to demonstrate the advantages of using renewables-sourced electricity, assess alternative energy sources such as hydrogen, and the efficiency of carbon capture. 

(Source: Calix Limited) An infographic demonstrating CO2 output of lime manufacture

CCUS the troubled child of ambitious decarbonisation plans 

This final stage will likely be the company’s most difficult hurdle: no company on earth has yet managed to make carbon capture work as intended on paper. 

Chevron is currently losing money as it seeks to make its flagship Gorgon CCUS facility work as intended. An internal report commissioned by the company was published quietly onto an FOI disclosure log earlier this year. 

However, the old adage is true: it only needs to work once. 

But the CCS components of the plan will only come into effect once the larger South West Hub CCS project is operational. Until that time, Calix has the cash to splash. 

Furthering an existing Heads of Agreement 

Immediate progression of the partnership will see Calix and Adbri further work out the finalisation of commercial terms and further technical work underpinning the project. 

Calix and Adbri expect to undertake a feasibility study for the project, supported by the federal funding boost today. Plant construction and demonstration will use raw material feedstock from Adbri and will test multiple fuel energy options, as well as renewables. 

Further, on top of the $11m, Calix has also today confirmed its receipt of $5.19m from the Federal government by way of a tax rebate for R&D costs attached to its LEILAC projects. 

Calix received industry support from the European private sector in advancing its LEILAC R&D, firmly placing Calix on the radar of the EU decarbonisation space. 

Calix's three month charts versus the energy index