Calix (CXL) Status Update summary

Key highlights and technology overview

• ZESTY targets zero-emission steel production using minimal green hydrogen, addressing a major source of global CO2 emissions and offering a cost-effective decarbonization pathway.

• The technology processes low-grade iron ores and fines without pelletizing, reducing capital and energy requirements and enabling green iron production.

• Over 130 test runs on nine different ores have been completed since 2021, with pilot-scale results showing metallisation rates up to 98% and successful briquetting of green HBI.

• The pilot facility operates on renewable energy, and the process is energy agnostic, supporting electrification and use of various energy sources.

• Patent protection was filed in 2021, with ongoing development and multiple patent families supporting further IP protections.

Industry opportunity and commercialisation

• Iron and steel production is responsible for over 8% of global CO2 emissions, with iron ore exports being critical to Australia's economy.

• ZESTY's ability to upgrade low-grade ores is vital as the industry shifts toward electric arc furnaces, which require higher-grade inputs.

• The commercialization strategy is capital-light, focusing on licensing and royalty models, with attractive economics even without carbon pricing.

• Collaborations and multi-year partnerships are underway with industry partners and research centers to accelerate development and deployment.

• The addressable market for iron and steel is estimated at $640 billion annually, with ZESTY's royalty-based market opportunity projected at up to US$5.9bn per annum by 2050.

Technology status and competitive advantages

• The core technology is a novel kiln design that separates the heating source from the material, allowing for efficient, energy-agnostic processing.

• ZESTY uses green hydrogen in a renewably powered reactor, targeting the lowest hydrogen use in green ironmaking and efficient recycling of hydrogen and steam.

• The process eliminates the need for pelletizing, streamlining production and reducing costs.

• Proven industrial robustness with over a decade of operation in magnesia and cement applications.

• The next ZESTY demonstration plant is planned at 30,000 tons per annum, with FEED study completed and partner engagement ongoing.