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Calix (ASX:CXL) executes MOU for lime calciner project in the UK

Materials
ASX:CXL      MCAP $273.0M
06 July 2021 13:10 (AEST)
Calix (CXL) - CEO, Phil Hodgson (left)

Source: Farm Online

Australian tech company Calix (CXL) has partnered with UK construction solutions provider Tarmac to co-develop a calciner for lime production in the United Kingdom.

Lime is used extensively in the making of cement, glass, pulp and paper, with the production of lime itself emitting roughly one tonne of carbon dioxide (CO2) per one tonne of the material produced.

The parties have executed a memorandum of understanding (MOU) covering the planned development, which includes carbon dioxide capture and multi-fuel options, with a production site in the UK still to be determined.

Under the MOU, both Calix and Tarmac intend to conduct a feasibility study and front-end engineering design (FEED) on the project.

The activities will cover lime production of around 30,000 tonnes per annum (tpa), including 20,000tpa CO2 capture and the potential for fuel options spanning natural gas, hydrogen and electricity.

The project will take a two-phase approach to a final investment decision on the plant and will seek funding under the UK Department of Business, Energy and Industrial Strategy’s £1 billion (A$1.84 billion) Net Zero Innovation Portfolio.

Calix CEO and Managing Director Phil Hodgson commented on the deal: “Hot on the heels of our recent announcement for a world-first, zero emissions lime kiln with ADBRI in Australia, we are now proud to be working with Tarmac in the UK on a second project of equal ambition,” he said.

Tarmac’s lime business development manager David Wilson said the project fully aligned with the company’s strategic ambitions to decarbonise.

“Tarmac has fully committed to supporting the UK’s ambition of net-zero carbon emissions by 2050 and is making progress right across our business and supply chain, using a whole life-cycle approach to design CO2 out of our products and services.”

Both Calix and its partner are bound to complete the phase one feasibility study ahead of a full phase two FEED, targeting completion in the second quarter of 2022.

If agreed, progress beyond these actives would see construction take place over roughly 18 months and commercial demonstration on potentially multiple fuel options over a further two years.

Calix shares were up by around eight per cent, trading at $2.99 at 12:29 pm AEST.

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