Calix Share Price Soars on LEILAC Project Output Report (ASX:CXL)

The Calix Ltd’s [ASX:CXLLEILAC project consortium has released its final output report, the Roadmap 2050.

The report provides a vision for how Calix’s carbon capture technology could ‘significantly contribute to industrial CO2 mitigation’.

Calix Ltd [ASX:CXLshare price is currently exchanging hands for $5.20 per share, up 8.8%.

ASX CXL - Calix Share Price ChartSource: TradingView.com

Highlighting the strength of the green revolution theme, CXL shares have gained 530% over the last 12 months.

Calix overview

As we’ve covered earlier in the year, CXL develops patented technology to address global sustainability challenges.

It seeks to address these challenges by developing sustainable solutions for advanced batteries, crop protection, aquaculture, wastewater, and carbon reduction.

Essentially, Calix aims to become a ‘global innovator of industrial solutions for the environment.

In FY20 the company reported $25 million in net assets and zero debt with $24.4 million in total revenue.

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Final output report released

Developed by the LEILAC Consortium, which includes some of the world’s largest cement, lime, chemical and utilities companies, the Roadmap 2050 report outlined CXL’s vision for carbon capture technology.

The report also includes a commercialisation and deployment roadmap with full techno-economic modelling.

Here are the report’s key conclusions:

  • For a full scale, developed and retrofitted LEILAC plant, CO2 capture costs (including Capex and Opex) for cement is estimated to be in the range of around €14 to €24 per tonne of CO2 avoided – the lowest reported of any technology – with scope for further cost reductions possible.
  • For full-chain CO2 mitigation projects, depending on the transport and storage options, total costs may be in the region of €39 to €80 per tonne CO2 avoided. Current EU ETS allowances recently traded at €62 per tonne of CO2 , and have been consistently rising over time despite the impacts of Covid.’

What’s next for the CXL Share Price?

Calix notes that ‘several development and scale-up steps’ are needed to fit a complete LEILAC system to a cement plant.

However, in theory, as there is minimal energy requirements and relatively small capex, a full scale, fully developed LEILAC facility capture costs are predicted to be between €14–24 per tonne.

This is the lowest reported of any technology and still has scope for further reductions in cost.

Based on these findings, the company notes:

It is estimated that future, fully developed and full scale retrofit LEILAC installations using waste fuel could achieve full chain CCS abatement costs (capture, transport, storage, including CAPEX costs) of around €39 per tonne of CO2 avoided.

Approximately half of these costs are linked with transporting and storing the CO2 and nearly a quarter to the capital and operating costs are linked with CO2 compression.

Another way to reduce carbon emissions is via the mass adoption of electric vehicles. EVs are cleaner than our current internal combustion engine cars.

And a crucial element of EVs is lithium.

So if you’re interested by the potential of the lithium sector but unsure where to start in your research — with so many ASX lithium stocks out there right now — I suggest reading our free 2021 lithium report.

Regards,

Kiryll Prakapenka,

For Money Morning

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Kiryll Prakapenka is an investing autodidact who is passionate about conducting in-depth research on investments. Kiryll brings sound analytical skills to his work, courtesy of his Philosophy degree from The University of Melbourne. A student of legendary investors and their strategies, Kiryll likes to synthesise macroeconomic narratives with a keen understanding of the fundamentals behind companies.


Money Morning Australia