Calix (ASX: $CXL) and Heidelberg Materials Joint Venture Announcement

Calix Limited (ASX: $CXL) has announced a joint venture between its subsidiary, Leilac Limited, and Heidelberg Materials (FWB: HEI) for the construction, operation, and potential future ownership of the Leilac-2 demonstration plant at Heidelberg Materials' Ennigerloh cement plant in Germany. The project aims to demonstrate a replicable module that can efficiently capture up to 100,000 tonnes per year of unavoidable process carbon dioxide emissions released during cement and lime production.

Executive Commentary on Joint Venture and Leilac-2 Project

The formation of a joint venture with Heidelberg Materials for the Leilac-2 plant marks another important milestone for commercialization of the Leilac technology. We look forward to continuing to collaborate with Heidelberg Materials to demonstrate and deploy cost-effective solutions to decarbonize cement production at commercial scale.

Summary of Calix (ASX: $CXL) and Heidelberg Materials Joint Venture Announcement

Calix Limited (ASX: $CXL) has formed a joint venture with Heidelberg Materials for the construction, operation, and potential future ownership of the Leilac-2 demonstration plant at Heidelberg Materials' Ennigerloh cement plant in Germany. The project aims to demonstrate a replicable module that can efficiently capture up to 100,000 tonnes per year of unavoidable process carbon dioxide emissions released during cement and lime production. The joint venture also includes exploration of initial steps required for the development of a full-scale commercial installation, Leilac-3, which could potentially process all the host cement plant's raw material, capturing between 0.5-1 million tonnes of unavoidable process CO2 emissions per year. The project was awarded funding of €16m from the European Union's Horizons 2020 programme and is supported by various cash and in-kind commitments from the project's consortium partners. Construction of the Leilac-2 plant is expected to commence in 2025, with commissioning in mid-2026. The company is also considering various options to fund its remaining share of the construction cost, including its own balance sheet, capital, and debt options.