Calix (ASX:CXL) pockets $947k ARENA grant for ZESTY development

• Calix (CXL) has been awarded a $947,000 grant by the Australian Renewable Energy Agency (ARENA) to further develop its Zero Emissions Steel Technology (ZESTY)
• The company says it will use the grant to help fund a basis of design (BOD) and front-end engineering and design (FEED) study for its planned ZETSY-iron demonstration plant
• The plant will produce green hydrogen for the direct reduction of iron ore to sponge ore without using carbon in the process: a “new approach” to zero-emission iron and steel
• Calix says the project will also help it establish key industry partnerships across the hydrogen, iron ore and renewables sectors
• Shares in Calix are up 0.71 per cent to $4.23 at 12:07 pm AEDT

Calix (CXL) has been awarded a $947,035 grant by the Australian Renewable Energy Agency (ARENA) to further develop its Zero Emissions Steel Technology (ZESTY).

The environment tech company will use the grant to help fund a basis of design (BOD) and front-end engineering and design (FEED) study for its planned ZETSY-iron demonstration plant.

The proposed 30,000-tonne-per-annum (tpa) ZESTY-iron demonstration plant will produce green hydrogen for the direct reduction of iron ore to sponge ore without using carbon in the process.

Calix said it believed the plant would demonstrate a new approach to zero-emissions iron and steel.

Managing Director and CEO Phil Hodgson said the project could help make Australia a “leading exporter” of iron ore as well as green iron and green steel.

“The decarbonisation of iron and steel represents a unique opportunity for Australia,” Mr Hodgson said.

“We look forward to continuing to work closely with ARENA and our partners in industry and academia towards achieving these environmentally and economically important goals.”

Calix says the project would also help it establish key industry partnerships across the hydrogen, iron ore and renewables sectors, in addition to possible end users of green iron.

ZESTY is compatible with multiple iron ore types, providing pathways for one of Australia’s most important exports to become sustainable in a low-carbon world.

Shares in Calix were up 0.71 per cent to $4.23 at 12:07 pm AEDT.