Calix raises $25 million to speed low carbon commercialisation

Low emissions industrial technology developer Calix is raising $25 million from investors to speed the commercialisation of its technologies to decarbonise the production of cement and lime, iron and steel and lithium.

The company has completed a $20 million institutional placement and announced a share purchase plan for existing investors to raise a further $5 million.

The cash will speed the conversion of opportunities for its Leilac cement and lime and ZESTY iron and steel technologies to engineering projects.

It will also speed a restart of its paused mid-stream project joint venture with Pilbara Minerals to develop its low emission lithium processing technology.

The company’s Leilac technology centres on a novel kiln heated electrically from the outside, rather than the inside as in cement production through burning coal – a traditional method which involves the production and emission of vast amounts of carbon dioxide.

The EU is bankrolling the construction of a second generation leilac-2 plant at a HidelbergCement’s operational plant in Hannover, Germany.

Its ZESTY technology was recognised at the Cop29 conference as a ‘renewably powered hydrogen direct reduced iron’ technology, using ‘minimal’ amounts of hydrogen.

And Calix has previously $80 million from investors to fund its share of planned low emission cement and lime processing plants being constructed with Australian building products companies Boral and Adbri.

Calix told investors that its ‘capital light licensing model’ was progressing well, with funding for demonstration plants focused at a subsidiary level.

However Calix said: “Recent challenging capital market conditions have not been conducive to project or subsidiary financing options, while depressed commodity prices and demand particulaly in lithium and cement sectors have led to decisions to pause some key projects or cause delays to project milestones and expected revenues.

“…The placement and SPP will provide an 18 month runway to execute the company’s commercialisation strategy, while upside revenues could extend this runway further.

“A strengthened balance sheet and increased runway will enable commercial opportunities to be further developed, while also supporting patient execution on subsidiary capital raisings for Leilac and ZESTY.”

Meanwhile a further use for the Calix technology is in direct air capture of CO2.

Calix’s strategic partner in direct air capture Heirloom has closed a US$150 million funding round.

Further reading:
New site chosen for Calix’s Leilac low emission cement plant
Calix and Pilbara Minerals pause lithium technology project
Calix green iron tech recognised at UN climate talks
Calix raises funds for Boral and Adbri low-emission industrial plants

Picture: /Picture: Calix/Leilac-2 module located at Heidelberg Materials’ Ennigerioh plant