A Message from the CEO
Welcome to the 50th edition of the Calix newsletter – a milestone in itself as we mark 20 years since our founding. I am pleased to say that this edition also contains several commercial milestones for Calix as we continue to make progress towards the deployment of our patented platform technology in multiple major global markets.
Perhaps most notably, this newsletter features the award of up to $44.9m in matched funding from the Australian Renewable Energy Agency to help fund a ZESTY Green Iron Demonstration Plant. The execution of the grant agreement to build a 30,000 tonne per annum Hydrogen Direct Reduced Iron (H2-DRI) demonstration plant follows extensive pilot-scale testing and thorough technical and commercial assessment of the ZESTY Green Iron Demonstration Plant project. We aim to build on this endorsement and use it to help catalyse further funding for ZESTY at a subsidiary level. The ZESTY Green Iron Demonstration Plant project is now proceeding to detailed design as we aim to demonstrate a globally leading technology that can help Australia capitalise on its green iron opportunity.
Staying within our Sustainable Processing line of business, we also announced an MOU, material testing and engineering study for our Zero Emissions Alumina (ZEAL) technology with Hydro, a global aluminium and renewable energy company. We are delighted to be working with one of the world’s leading aluminium companies to develop the application of our platform technology to help electrify the alumina calcination process. The testing and development program is expected to generate over $1m of revenue whilst progressing a highly prospective application of the technology.
In our Leilac business, this newsletter focuses on recent works at our Leilac-1 pilot plant in Belgium, where a significant plant upgrade and testing program was completed. Following the installation and commissioning of a new calciner tube suitable for electrification and potential hybrid electric-natural gas heating, an extensive operations campaign in partnership with the Heidelberg Materials host cement plant team successfully achieved two key objectives. First, we demonstrated stable and flexible operations, running continuously for 21 days whilst quickly responding to the needs of the host plant. Second, the performance of the plant strongly correlated with predictions from our technical models, providing further validation of the potential of next generation designs and commercial scale deployments. Also featured in this newsletter, we’re pleased to report that Project ZETA, a world-first electric lime calciner and carbon capture plant in South Australia, passed its pre-FEED milestone and has entered the FEED stage on time and on budget.
Our Magnesia business continues to report growing revenues. In this edition, we focus on one source of that revenue growth – expansion of our business in Queensland – thanks to a new contract with Unitywater and a long-term contract that was renewed and expanded with the City of Gold Coast. The growth in Queensland mirrors revenue growth and sales in new regions in the United States, where the benefits of our expanded production capacity and footprint is being realised.
This edition of the newsletter follows the recent publication of Calix’s results for the 2025 Financial Year. We were pleased to report growing revenues, cost reductions and an extended cash runway. For the first time, Calix recorded revenue contributions from all lines of business. The difficult but necessary decision to reduce our headcount in response to ongoing reviews of grant funding awarded to Leilac’s projects in the U.S. contributed to a 23% reduction in operating costs in the second half of FY25 compared with the first half, despite some one-off costs being incurred. We also expect a significant reduction in capital expenditure this financial year.
The combination of growing revenues and diligent cost management continues to provide Calix with an 18-month cash runway to pursue its commercial objectives, most notably securing funding at the subsidiary and project level for ZESTY and Leilac. In FY25, we also continued to make progress towards our own sustainability ambitions, and we’re pleased to provide more information in this newsletter and through links to our full 2025 Annual Reporting suite and results materials.
It has been extremely pleasing to start the 2026 Financial Year with important milestones delivered across our target applications in green iron, alumina, and lime, as well as contract wins in our Magnesia business. As we look ahead, the next few months look set to bring an exciting close to the 2026 calendar year. In particular, the lithium Mid-Stream Demonstration Plant, being developed in a joint venture with PLS, remains on track to complete construction in the December 2025 quarter. It has been wonderful to see a world first electric calciner for spodumene erected, and we look forward to keeping you updated with our progress over the weeks and months ahead.
As always, we sincerely thank our shareholders and other stakeholders for your ongoing support and interest. Despite the significant progress we’re pleased to report, we recognise that a combination of market conditions and project delays have led to missed commercial milestones in FY25 and, together with challenging market conditions for clean tech companies, this has resulted in a disappointing share price performance for the Company. We are grateful for your support, and we hope you continue to share our conviction in the opportunity ahead of us, and the long-term value it can create for shareholders, industry and the planet.
Mars is still for quitters!
Phil Hodgson
Managing Director & Chief Executive Officer
Calix’s ZESTY executes $44.9m ARENA Grant for Green Iron Demonstration Plant
Calix executed final agreements on a $44.9m ARENA grant to build a 30,000 tpa hydrogen direct reduced iron demonstration plant. ZESTY aims to combine flexible electric heating and minimal hydrogen use to deliver low-cost pathways to green steel, with global recognition at COP29 and Decarb Connect.
Calix and Hydro partner to develop Zero Emissions ALumina
Calix and Hydro, a global aluminium and renewable energy company, have signed and MoU to co-develop Calix’s electric calcination technology for near-zero emissions smelter grade alumina. The partnership includes paid pilot-scale testing and a pre-FEED study, generating revenue while accelerating commercialisation.
Construction progress update for lithium Mid-Stream Demonstration Project
Construction of the joint venture demonstration plant with PLS was 80% complete at the end of FY25. The Calix electric calciner tower has been erected and commissioning is targeted for December 2025, supported by $35m in combined Australian and WA state government funding.
Leilac-1 completes successful upgrade and performance testing campaign
Leilac-1, a pilot plant and R&D facility at Heidelberg Materials’ cement site in Lixhe, Belgium, has successfully completed an operations campaign demonstrating the stability and performance of the Leilac technology. This campaign followed the installation and commissioning of a new calciner tube suitable for electrification, marking an important step toward hybrid-electric operations.
Project ZETA passes pre-FEED milestone
Leilac’s flagship project passed pre-FEED on time and on budget. ZETA aims to be the world’s first commercial electric lime calciner with integrated CO₂ capture, supplying low-carbon lime to South Australia and CO₂ to make sustainable transport fuels.
Magnesia Market Expansion in Queensland
Calix has expanded its operations in Queensland with a new Unitywater contract and a renewed and expanded long-term partnership with the City of Gold Coast. These engagements support continued growth in our Magnesia business and local benefits from more sustainable wastewater treatment.
Calix FY25 Results: Revenue Growth, Cost Reductions and Strong Cash Runway
In FY25, revenue and other income rose 11% to $33.9m, while operating costs were cut by 23% in the second half of the year relative to the first half. Growing revenues and reduced operating costs means Calix continues to have an 18-month cash runway. All business lines contributed revenue for the first time, alongside commercial milestones.
Building shared value: Calix’s progress towards sustainability in FY25
Our FY25 Sustainability Report outlines progress on five key ambitions, including reducing emissions in line with a 1.5°C pathway and embedding the UN Global Compact principles across our operations.
