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Boral (ASX:BLD) and Calix (ASX:CXL) secure $30m funding for carbon abatement project

ASX News, Materials
ASX:CXL      MCAP $273.9M
16 May 2022 13:00 (AEST)

Boral Chief Operating Officer Darren Schulz. Source: Boral

Boral and Calix have been awarded $30 million in government funding to develop a carbon abatement project.

The funds come under the Australian Government’s Carbon Capture, Use and Storage (“CCUS”) Hubs and Technologies Program.

The project is being developed by international building products and construction materials group, Boral, at its cement and lime facilities in the NSW Southern Highlands, targeting carbon dioxide capture of 100,000 tonnes per year.

The other aim of the project is to assess alternative energy sources such as renewable energy and alternative fuels, to further reduce CO2 emissions.

This aligns with the governments ‘Technology Roadmap’ which seeks to reach net
zero emissions by 2050 and to lower the cost of carbon capture, use and storage to less than $20 per tonne.

Calix will contribute its Low Emissions Intensity Lime and Cement (“LEILAC”) technology.

By participating in this project, CXL said it will be able to accelerate its tech, through development of both cement and lime deployment options, as well as alternative fuels and renewable energy use.

The government funding is set to support the partners in finalising key commercial terms and commencing project design.

Calix said that if the initial feasibility phase is successful, a full front end engineering and design study will follow leading to a final investment decision, followed by an engineering procurement construction and operational phase.

The initial feasibility phase is expected to take 12 months to complete.

Boral Chief Operating Officer Darren Schulz said by delivering this project, the companies are leading the way in reducing emissions across the industry.

“This is game changing technology for our industry and will play a critical role in supporting customers’ sustainability targets,” he said

“By modernising Australia’s cement industry, we are enabling the growth of lower carbon construction materials, which are essential to jobs and local economies.”

Boral shares were up 0.91 per cent trading at $3.31 and Calix shares were also up, 1.22 per cent trading at $6.66 at 12:39 pm AEST.

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