Calix (CXL) Status Update summary

Technology Overview and Market Opportunity

• ZESTY is a zero-emissions steel technology using a novel kiln design for hydrogen-based reduction of iron ore, enabling energy flexibility and significant CO2 abatement in steelmaking and other industries.

• The technology processes a range of ore grades without pelletising, offers lower capital and carbon intensity, and is scalable via modular expansion.

• ZESTY's flexible electrification allows rapid ramp-up/down to match renewable energy availability, supporting grid balancing and cost efficiency.

• The addressable market for direct reduced iron (DRI) is projected to reach 790 million tons by 2050, with strong policy and industry tailwinds globally.

• The business model is capital-light, focusing on licensing and royalties, with engineering services and paid trials as early revenue streams.

Major Project Milestone and Funding

• Secured a $44.9 million ARENA grant for a $90 million, 30,000 tpa demonstration plant in Australia, covering up to 50% of the project budget.

• Project follows successful pilot trials and FEED study; remaining funding to be sourced from strategic or financial investors.

• Strong endorsements from the Australian Government and ARENA highlight ZESTY's potential to decarbonise steelmaking and create new export opportunities.

• The demonstration plant will advance ZESTY to TRL 7, with commissioning and operation expected from 2028, and first revenues anticipated within three years.

• Demonstration plant site is confidential; Calix has resources to progress through FY26.

Technical Progress and Competitive Advantages

• ZESTY proven at pilot scale; over 130 pilot tests show high metallisation (70–98%) and low energy use (0.9–1.3 MWh/t HBI), competitive with current DRI processes.

• The technology achieves near-standard briquetting density with low and mid-grade ores.

• Demo plant will validate full-scale reactor tube and enable downstream steelmaking tests.

• Targets minimum hydrogen consumption and operates at low pressure, simplifying scale-up.

• Leadership team and advisors bring deep expertise in iron, steel, and decarbonisation.