Calix (ASX:CXL) has executed a joint development agreement with mining giant Rio Tinto (ASX:RIO), which will fund over $35 million of cash and in-kind support for the demonstration of the Zesty technology.
The Zesty demonstration plant, located in Kwinana, Western Australia, is designed to produce up to 30,000 tonnes per year of hydrogen direct reduced iron or hot briquetted iron from a range of iron ore sources.
Under the agreement, Rio Tinto will support Calix to reach a positive final investment decision (FID), expected in 2026. As part of the cash payment of $8 million will be provided in two tranches prior to a FID, subject to completing due diligence and project milestones.
Subject to a FID and construction of the plant, Rio Tinto will provide up to 10,000 tonnes of a range of Pilbara iron ores for use in plant commissioning and operations, as well as introductions to potential users of the Zesty green iron product for material testing and downstream processing to steel.
Calix CEO Phil Hodgson says Rio Tinto’s support further confirms the potential of Zesty helping decarbonise a critical industry responsible for 8% of global CO2 emissions.
Rio Tinto Iron Ore CEO Matthew Holcz says the world needs low-emissions steel if it is going to decarbonise.
“We continue to look at a range of ways Pilbara iron ores can help to do this as new technologies emerge,” Holcz says.
The Zesty technology uses a combination of electrical heating and hydrogen reduction to produce green iron and green steel. Zesty aims to provide lowest cost pathways to green iron and steel through minimal hydrogen consumption, flexible electric heating compatible with intermittent renewable energy sources, elimination of ore pelletisation, and enabling the use of fines and lower grade iron ores.
Calix is a technology company that is applying its core technology to the cement, steel, magnesia, alumina, critical minerals and direct air capture industries.
Write to Aaliyah Rogan at Mining.com.au
Images: Calix & Rio Tinto
