Low emission industrial technology company Calix has moved to raise $80 million from investors to fund its share of planned low emission processing plants being constructed with Australian building products companies Boral and Adbri.
The plants, which will utilise Calix’s new kiln technology enabling the capture of CO2 in the manufacture of cement and lime, and the processing of lithium, are a major step forward for Calix’s commercialisation plans and for ridding emissions from hard to abate industries.
Cement and lime production is one of the most polluting globally, accounting for eight percent of global CO2 emissions.
The kiln technology, in which a kiln is heated externally utilising green electricity rather than through combustion within the kiln, has been proven in extensive testing in Europe funded by the European Union.
Calix’s lead LEILAC-2 project (pictured) has passed its financial investment decision and will move on to building a plant capable of capturing 100,000 tonnes of CO2 or 20 per cent of an existing cement plant’s CO2 emissions.
LEILAC-1 and 2 have been installed at Heidelberg Cement plants in Europe, with Calix also announcing that Heidelberg Materials had signed a global licence to use its technology in up to 149 cement plants it operates across five continents.
The licence includes a royalty floor, a variable component linked to the carbon price, and a cap linked to costs verus alternative technologies. The royalty quantums were not disclosed.
The federal government also backs the new low-emission Australian processing plants.
In May in the lead up to the federal election Boral and Calix were awarded a $30 million grant to install a commercial-scale plant in NSW’s Southern Highlands, able to capture 100,000 tonnes per annum in emissions from lime manufacture.
And in June Pilbara Minerals and Calix were announced as recipients of a $20 million Modern Manufacturing Initiative – manufacturing Translation Stream grant to build a demonstration plant for a new, low carbon lithium salt refining process.
Now, to pay for its share of the projects Calix will make a private placement to raise $60 million and a share purchase plan for existing shareholders to raise up to an additional $20 million.
Calix said: The placement and SPP will accelerate commercialisation of the Calix technology platform and enable rapid further technology development targeted at significant strategic market opportunities.
The funds will also fund an engineering study of a proposed 30,000 tonne per annum green iron demonstration plant, utilising Calix’s Zesty technology.
CALIX LOW EMISSIONS CEMENT TECHNOLOGY GETS GREEN LIGHT
Picture: A pilot plant built by Calix at Heidelberg Cement’s Lixhe facility in Belgium