- Calix (CXL) is selling a $24.2 million stake in its LEILAC subsidiary to a decarbonisation investment group to accelerate the development of its carbon dioxide capture technology
- Carbon Direct Capital Management is set to claim a 6.98 per cent equity interest in LEILAC, CXL’s research and innovation project
- The project seeks to develop a technology that captures carbon dioxide as it is released during the limestone production process
- Calix Chief Executive Officer Phil Hodgson says the investment marks a strong vote of confidence in LEILAC
- Calix shares were up 20.1 per cent to trade at $4.60 at 12:27 pm AEST
Calix (CXL) is selling a $24.2 million stake in its LEILAC subsidiary to a decarbonisation investment group to accelerate the development of its carbon dioxide capture technology.
Carbon Direct Capital Management has invested €15 million (around $24.2 million) for a 6.98 per cent equity stake in Calix subsidiary, the Low Emissions Intensity Lime And Cement (LEILAC) Group.
CXL describes LEILAC as a European Union Horizon 2020 research and innovation project that is hoped to enable large cement and lime companies to mitigate their carbon dioxide emissions.
According to Calix’s website, the technology captures pure carbon dioxide as it is released from the limestone during the production process, while furnace exhaust gases are kept separate.
As part of the deal, Carbon Direct’s investment is set to accelerate and continue to de-risk technical and commercial deployment of the technology.
The companies also entered into a licence agreement, under which LEILAC is set to retain 30 per cent of royalties earned by the group once the carbon dioxide capture technology hits the market.
Calix Chief Executive Officer Phil Hodgson said the investment marked a strong vote of confidence in LEILAC.
“The deal also represents our first material portfolio transaction in our stated strategy to farm-in equity to deploy our technology commercially,” he said.
“We believe this strategy adds speed and focus at a critical time in the
technology commercialisation journey, and leaves the head company to focus on what it does best – supporting our technology and developing the next global, disruptive applications.”
Calix shares were up 20.1 per cent to trade at $4.60 at 12:27 pm AEST.