The Calix Ltd (ASX: CXL) share price is surging higher on Wednesday.
In afternoon trade, the environmental technology company's shares are up 12% to $7.79.
Why is the Calix share price shooting higher?
Investors have been bidding the Calix share price higher today in response to an announcement relating to the company's LEILAC-2 project.
According to the release, the LEILAC-2 project has passed the financial investment decision (FID) milestone.
This will see Calix build a plant capable of capturing 20% of a cement plant's CO2 at very low cost. It will be integrated into HeidelbergCement's operational plant in Hannover, Germany, which will be the first-of-a-kind modular retrofit, aiming to address a cement plant's unavoidable emissions.
The release notes that the FID milestone has been achieved despite the complications arising from the global pandemic and Russia's invasion of Ukraine. Management will now proceed with the detailed design and expects to commence construction in 2023. Though, it warns that there remain key project risk flag points prior to purchasing major components, given the market situation.
What is LEILAC?
LEILAC is an acronym for Low Emissions Intensity Lime and Cement. It has been designed to enable a green and just transition to a low-carbon future with the objective of strengthening local industry and maximising the use of local resources – while addressing climate change.
Calix aims to demonstrate, at industrial scale, a breakthrough technology that can capture a cement or lime plant's unavoidable process emissions for minimal cost, which provides a viable and effective decarbonisation solution. The LEILAC-2 plant is being designed to capture 100ktpa of CO2.
Calix's MD, CEO and Chairman, Phil Hodgson, commented: "The positive FID decision marks a significant milestone and further demonstrates the momentum which is building around the LEILAC-2 project. The completion of the FEED has been achieved despite the challenging circumstances and is a testament to the strong level of collaboration which has been cultivated between the consortium partners, who have all worked together to make significant progress on this breakthrough project."
