The Calix Ltd (ASX: CXL) share price is off to an explosive start today. Shares in the clean technology company have rocketed to a new all-time high on Friday following a new patent filing for an application of its core technology.
At the time of writing, Calix shares are swapping hands for $7.15 apiece. That's an increase of 16.7% from their previous close. The Calix share price is now 600% above where it was a year ago.
The company's latest patent filing for a technology dubbed "ZESTY" has investors paying attention. Let's take a closer look at what it's all about.
Calix share price surges on 'ZESTY' new technology
Investors are bidding up Calix shares on Friday as the market gets excited about the company's latest patent filing.
According to the release, the green company has submitted a patent for using its core technology in the production of iron and steel with zero carbon dioxide (CO2) emissions. The new innovation is known as Zero Emissions Steel TechnologY, or ZESTY for short.
Furthermore, Calix's ZESTY aims to improve current methods of iron production. The company outlined four goals for its process that are likely fuelling the Calix share price today. These include:
- Reduced temperature of operation;
- No pelletisation of iron ore required — enabling the processing of fines;
- Able to be renewably powered, with intermittent operation; and
- Can approach theoretical minimum hydrogen use.
Moreover, the company's own Low Emissions Intensity Lime and Cement (LEILAC) process could be used in conjunction with iron production. This would be complementary as lime is used to remove impurities during iron production.
What's next?
From here, Calix plans to carry out larger-scale testing of its ZESTY process dependent on a confirmation from its current small-scale testing. This upsized study would be undertaken with ores from a potential customer that the company has already engaged in discussions with.
Commenting on the new technology, Calix CEO Phil Hodgson stated:
These are early days for the Calix ZESTY technology, however, given the materiality of both the potential for our technology in iron and steel production and the size of the environmental challenge, being similar to the one our LEILAC business is addressing, we will be pursuing this opportunity as quickly as possible – the world cannot wait any longer.
Finally, based on the current Calix share price, the company now holds a market capitalisation of $1.15 billion.
