Here’s why the Calix (ASX:CXL) share price shot 15% higher today

The Calix share price closed 10% higher today after a company announcement earlier this morning. Here’s a closer look.

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The Calix Ltd (ASX: CXL) share price closed just over 15% higher today, finishing off the week at $1.57 per share after the company released an announcement on its carbon capture project earlier today.

Calix is dedicated to developing patented technology that can address global sustainability challenges by providing industrial solutions. The company is active on four continents.

Calix’s technology is currently being used to develop environmentally friendly solutions for areas such as crop protection, wastewater and carbon reduction.

Let’s take a look at today’s announcement to see what’s happening at Calix.

European approval

Calix leads the Low Emissions Intensity Lime & Cement (LEILAC) project. The objective of the project is to dramatically reduce Europe’s CO2 emissions without using too much energy or spending too much money.

To achieve this, Calix teamed up with industrial heavyweights including HeidelbergCement, Cemex, Lhoist and Tarmac during the LEILAC-1 Project.

Today’s announcement revealed that, following the success of the LEILAC-1 project, the European Commission has now officially approved Cemex to join the LEILAC-2 project.

The LEILAC-2 Project is focused on using the HeidelbergCement’s Hannover cement plant to further progress Calix’s CO2 mitigation technology. This follows the successful piloting of the technology in Belgium via the LEILAC-1 Project.

The LEILAC-2 Project is currently undergoing basis-of-design work, which is scheduled for completion by the end of June 2021. If successfully met, this work will be followed by full front-end engineering design.

Some words from Cemex

Commenting on joining forces with Calix once again for the LEILAC-2 project, Global R&D Head of Cemex Davide Zampini said:

We are very enthusiastic about our continued participation in the LEILAC-2 project. Amongst the different technologies that we are pursuing, it is one of the most promising technologies to mitigate CO2 emissions in clinker production. We look forward to supporting Calix and the LEILAC team and contribute to key developments in the pilot project. Above all, key members of the industry are collaborating to accelerate the possibility of adopting the technology.

The Calix share price rocketed on today’s news and now sits up 93.83% on this time last year. 

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Motley Fool contributor Gretchen Kennedy has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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