Calix and Boral Secure $30 Million for Carbon Abatement Project
Calix shares rose as high as 8% in morning trade before subsiding to trade largely flat by the afternoon.
Despite CXL shares gaining 170% in the last 12 months, the stock shed 25% in the last month, as markets undergo a risk-off transition.
Calix and Boral to develop carbon abatement project
Environmental tech company Calix announced it will develop a carbon abatement project with Boral after winning $30 million in government funding.
The funding, provided by the Australian Government’s Carbon Capture, Use and Storage (CCUS) Hubs and Technologies Program, enables the development of a cement and lime facility in NSW.
Calix will supply Low Emissions Intensity Lime and Cement (LEILAC) technology to build the facility.
The project has been designed to target zero emissions for lime and cement production, lowering carbon capture costs, and boosting the alternative renewable energy industry.
Initial phases are expected to take 12 months before the facility will begin production.
Calix reported that the project objectives align with the NSW government’s roadmap to reach net-zero emissions by 2050 and to lower the cost of carbon capture to less than $20/tonne.
CXL share price outlook
Boral Chief Operating Officer Darren Schulz said:
‘This is game changing technology for our industry and will play a critical role in supporting customers’ sustainability targets. Together, Boral and Calix have access to the required infrastructure, technology and operational expertise required to deliver this project and lead the way in reducing emissions across the industry. By modernising Australia’s cement industry, we are enabling the growth of lower carbon construction materials, which are essential to jobs and local economies.’
Calix Managing Director and CEO Phil Hodgson said:
‘Calix has been working hard advancing our technology in Europe, but this project represents an acceleration in carbon abatement ambition that has occurred in Australia over a very short timeframe, led by companies such as Boral, and with the support of the Federal Government and the Technology Investment Roadmap and CCUS Technologies Program. It is great to be working with an Australian company such as Boral, with an Australian, homegrown technology, in a world-leading project.’
The $30 million grant for the carbon capture facility is a positive market signal for Calix, as the NSW government’s involvement validates Calix’s carbon capture efforts.
However, the trick is figuring out how this will impact Calix’s revenue outlook.
Today’s announcement did not mention how this partnership with Boral will affect Calix financially.
Now, as governments the world over continue to set ambitious emissions targets, it doesn’t mean the transition away from fossil fuels will be easy.
In fact, Europe’s energy crisis is showing just how turbulent the embrace of renewable energy can be.
But this presents a great opportunity for one Aussie small-cap.
Recently, our resident small-cap expert Ryan Clarkson-Ledward found a small ASX stock that could help solve Europe’s energy crisis.
For Money Morning