Here’s why the Calix (ASX:CXL) share price is racing 8% higher today

The latest update from the company is exciting investors today.

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The Calix Ltd (ASX: CXL) share price is on the move in late morning trade. This comes after the technology company announced it has partnered up with London-listed RHI Magnesita NV (LON: RHIM).

Headquartered in Vienna, Austria, RHI Magnesita is the world’s largest manufacturer of refractory products. The company develops and produces materials such as steel, copper, glass and plastics that can withstand temperatures of 2,000 degrees.

At the time of writing, Calix shares are fetching for $2.80, up 7.69%.

Calix accelerates plans on CO2 emissions reduction

Today’s strong gain brings Calix shares closer to breaking its all-time high of $2.95 reached last month.

According to its release, Calix advised it has executed a Memorandum of Understanding (MOU) to advance CO2 emissions reduction in the refractory industry.

Together with RHI Magnesita, the MOU will cover the development of a Calix Flash Calciner for use in the production of refractory materials. This will enable CO2 to be captured and separated for either storage or utilisation.

Under the terms, both parties will undertake studies for a simple Front End Engineering Design (FEED) demonstration facility. The commercial-scale plant, if proceeded, would be built at a RHI Magnesita site.

The collaboration between the pair first began in 2019, targeting the reduction of CO2 in the refractory production process.

Calix noted that separating CO2 for storage or reuse is an important step in decarbonising the refractory industry.

Management commentary

RHI Magnesita chief technology officer, Luis Bittencourt commented on the MOU, saying:

We are pleased to be working with Calix on this project, which is a key part of the research and development programme on CO2 emissions reduction that we are carrying out over the next five years.

Together with our partners at Calix, we are seeking to develop new technologies for the capture, storage and utilisation of CO2 that would otherwise be emitted during the refractory production process.

Calix managing director, Phil Hodgson went on to add:

We are delighted to be working with RHI Magnesita, the world’s leading refractory company, on this important opportunity to help decarbonise the refractory industry, as well as looking at strategic opportunities in our high reactivity magnesium oxide businesses.

About the Calix share price

It’s been a positive 12 months for Calix shareholders, with the company’s share price hitting a record high last month. Calix shares have gained more than 260% since this time last year, and are up 150% in 2021 alone.

At today’s price, Calix presides a market capitalisation of roughly $429 million, with 158 million shares on issue.

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