Calix Limited says it has taken a significant step toward advancing its Zero Emissions Steel Technology, announcing it has executed a Joint Development Agreement with Rio Tinto to support the demonstration and potential commercialisation of its Zesty process.
In a news release, Calix said the agreement includes more than $35 million in cash and in-kind contributions from Rio Tinto for the planned Zesty Green Iron Demonstration Plant in Kwinana, Western Australia.
According to Calix, the non-exclusive agreement forms part of the commercial and financial commitments required to progress the demonstration project to a Final Investment Decision.
The company stated Rio Tinto will provide $8 million in cash – paid in two tranches subject to due diligence and project milestones – alongside engineering support, technical services and other in-kind contributions designed to help advance the project.
Calix noted the demonstration plant will be located within the Kwinana industrial area, near the NeoSmelt Project, allowing access to established utilities, port facilities and infrastructure.
The company noted that, subject to a positive investment decision, Rio Tinto plans to supply up to 10,000 tonnes of Pilbara iron ore for plant commissioning and operations, with further support including introductions to potential users of green iron produced using the Zesty technology.
As outlined by Calix, the Joint Development Agreement also sets out principles for Rio Tinto to take up shares in a Zesty subsidiary up to the value of its cash contribution.
The company added that Rio Tinto may assist future commercialisation by marketing and licensing the technology to its global customer base.
Calix said the two parties have identified key terms for a potential non-exclusive, perpetual global licence that would allow Rio Tinto to use and sub-license the technology, while Calix retains the ability to license Zesty to other industry partners.
According to Calix, the demonstration project is also supported by an ARENA grant of up to $44.9 million, contingent on matched funding being secured. The company stated that it intends to source the remaining capital at either the subsidiary or project level as development progresses.
Calix CEO and Managing Director Phil Hodgson described the agreement as an important milestone in advancing Zesty.
“The Joint Development Agreement with Rio Tinto is a major milestone in the commercialisation of Zesty. It provides cash and hands-on support, including industry leading resources, expertise and market reach, to progress the Zesty Demonstration Project,” Hodgson said.
He added that Rio Tinto’s involvement “provides further validation of the potential for the Zesty technology to be deployed to the world’s largest minerals and metals market” and supports efforts to help decarbonise a sector “responsible for ~8% of global CO2 emissions.”
Rio Tinto Iron Ore CEO Matthew Holcz said the company is exploring opportunities to reduce emissions across steelmaking pathways.
“The world needs low-emissions steel if it is going to decarbonise, and we continue to look at a range of ways Pilbara iron ores can help to do this as new technologies emerge,” Holcz said.
“We’re pleased to partner with Calix, an Australian technology company, to help progress the Zesty technology to be able to use Pilbara iron ores for lower-emissions steel making.”
Western Australian Premier Roger Cook said the agreement aligns with the state’s ambition to expand its presence in low-carbon manufacturing.
“Locally made green iron is a key part of my vision to become a renewable energy powerhouse and make more things here,” Cook said, adding that the Zesty demonstration plant will contribute to economic diversification.
ARENA’s Jody Herley noted the partnership illustrates the role of collaboration in heavy industry decarbonisation.“Decarbonising iron and steelmaking is critical to meeting global climate goals,” she said.
“The Zesty project shows how Australian innovation combined with partnerships across industry and government can accelerate the shift to cleaner, more sustainable metals production.”
The content of this article is based on information supplied by Calix Ltd and Rio Tinto Ltd. For more information, please refer to the official company announcement and communications from Calix and Rio Tinto. Please consult a licensed and/or registered professional in this area before making any decisions based on the content of this article.
