Guess which ASX tech stock is jumping 15% today

Investors are cheering an update on a major project.

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Calix Ltd (ASX: CXL) shares are heading in the right direction on Monday.

In morning trade, the ASX tech stock is up 15% to $2.04.

Why is this ASX tech stock jumping?

Investors have been buying the environmental technology company's shares this morning after it released an update on its Leilac-2 (Low Emissions Intensity Lime And Cement) project.

Readers may be aware that Calix shares were sold off in January after it announced that the Leilac-2 project would have to find a new home after Heidelberg Materials decided to end clinker production at its Hanover cement plant.

According to today's update, Leilac-2 has a new home and will now be constructed at Heidelberg Materials' cement plant in Ennigerloh, Germany.

The release notes that the Leilac-2 project aims to demonstrate a replicable module that can efficiently capture up to 100,000 tonnes per year of unavoidable process carbon dioxide emissions released during cement and lime production.

The retrofittable module is designed to be integrated into an operational cement plant with minimal downtime and operate on a range of fuels.

Looking on the bright side

While changing locations is not ideal, management believes that the successful relocation of Leilac-2 demonstrates the robust and transferrable nature of its technology and its ability to be rapidly applied at other operational cement plants.

It also highlights that the Ennigerloh site assessment found that the Leilac-2 design developed for the Hanover plant could be installed at the operational Ennigerloh plant with minimal delay and cost.

Furthermore, the required additional engineering work is expected to be limited to site-specific permitting and integration and no increase in total project capital cost is expected. Construction is anticipated to commence promptly following permitting.

Management commentary

The ASX tech stock's CEO, Daniel Rennie, was pleased with the news. He said:

The Leilac technology represents a scalable and economical solution to address the carbon dioxide emissions that are produced unavoidably by the cement and lime industries, and the rapid demonstration of such solutions is essential to achieving our industrial decarbonisation goals.

The swift and successful selection of Ennigerloh as the new Leilac-2 host plant is the result of the proactive, positive, and committed approach by Heidelberg Materials, the European Commission, and our partners, and the dedication of an exceptional collective project team. We look forward to continuing to work with all our partners to rapidly deploy efficient decarbonisation solutions at Ennigerloh and cement and lime plants around the world.

Despite today's gain, Calix shares are still down 60% over the last 12 months.

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. 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 Scott Phillips.

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