Calix Limited (CXL) Update / Briefing Transcript

Summary of Calix Limited (CXL) Update / Briefing July 30, 2025 Company Overview - Company: Calix Limited (CXL) - Core Technology: Development of a zero emissions steel technology known as Zesty, applicable in multiple industries including cement, lime, iron, steel, lithium, and alumina [5][12][28] Key Points and Arguments Zesty Technology - Technology Description: Zesty utilizes a unique heating method via a large steel tube, allowing for energy flexibility by using various energy sources such as fossil fuels, biomass, waste, and renewable electrons [6][14] - Environmental Impact: The cement and lime industry contributes approximately 8% of global CO2 emissions, with Zesty technology aiming to capture CO2 emissions during the heating process [9][12] - Iron Production: Zesty can reduce iron ore using hydrogen, potentially addressing 16% of global CO2 emissions from the iron and steel industry [12][28] Recent Developments - Demonstration Project: A new plant is being developed with a capacity of 30,000 tonnes per year, supported by a grant of AUD 44.9 million from Arena for a total project cost of AUD 90 million [15][17] - Government Support: Strong backing from the Australian government, including discussions on green iron opportunities with China, which produces about 50% of the world's steel [18][19] Economic Viability - Cost Projections: The goal is to produce green iron at around USD 400 per ton, contingent on achieving low electricity costs (AUD 20-30 per megawatt hour) [19][20] - Market Potential: The transition to low emissions technologies in iron production is expected to grow significantly, with projections indicating that by 2050, 50% of global iron ore production will utilize alternative low emissions technologies [28][29] Competitive Landscape - Global Context: The Zesty technology is positioned favorably against traditional methods, with a focus on reducing emissions and capital costs through flexible operations [35][36] - Market Drivers: The need for new technologies is urgent due to increasing CO2 emissions from ironmaking, with government policies supporting the transition to green iron [37][54] Additional Important Content - Hydrogen Supply: The technology can utilize various hydrogen sources, addressing concerns about the supply of renewable hydrogen in Australia [89][90] - Business Model: Calix aims to be capital light, focusing on licensing agreements and engineering design services rather than building and operating facilities themselves [67][81] - Future Outlook: The demonstration plant is expected to be operational by 2028, with plans for commercial facilities to follow, potentially generating revenue through toll processing and engineering studies [94][95] Conclusion - Strategic Positioning: Calix's Zesty technology represents a significant opportunity in the green iron market, supported by government initiatives and a growing demand for low-emission steel production. The company is well-positioned to capitalize on the transition towards sustainable industrial practices, with a clear roadmap for development and commercialization [80][81][96]