Calix recently announced a significant milestone for its Leilac business, with the execution of a Joint Development Agreement (JDA) between Leilac Limited and the Adani Group’s Ambuja Cements.
Following this announcement, Leilac signed a second contract to develop a commercial cement project in East Asia. Both projects require zero capital expenditure by Calix or Leilac and aim to deliver an immediate economic business case alongside a fast and cost-effective route to commercial deployment of the Leilac technology in the global cement market.
Commercialisation in partnership with Adani’s Ambuja Cements
The partnership between Leilac and the Adani Group’s Ambuja Cements aims to jointly develop a commercial-scale cement project at the Sanghi cement plant in Gujarat, India.
Adani Cement is the building materials solutions business of the diversified Adani Group and comprises Ambuja Cements Limited and ACC Limited. With an annual cement production capacity of ~109 million tonnes, Adani Cement is the 9th largest cement producer globally and accounts for nearly 30% of the cement used in India’s housing and infrastructure projects.1
The partnership marks an important step in Ambuja Cements’ broader decarbonisation strategy and supports its SBTi-validated net zero target for 2050. As the Company advances the electrification of cement manufacturing to increase the use of renewable energy, backed by nearly 1 GW of captive green power, it is laying the groundwork to scale breakthrough solutions such as carbon capture.
About the Leilac project at the Sanghi cement plant
Located at Ambuja Cements’ Sanghi cement plant in Sanghipuram, Gujarat’s Kutch district, which has a total clinker production capacity of 6.6 million tonnes per year, the Leilac technology will aim to deliver key benefits, including:
- Reduced energy costs and fuel emissions via hybrid electric heating
- Enhanced production capacity
- Improved economics of carbon capture, strengthening the business case for large-scale deployment of carbon capture and utilisation.
The project aims to retrofit the Leilac technology with minimal downtime for the Sanghi cement plant through a phased deployment. A first commercial demonstration module is designed to enable technology development and evaluation. Subject to successful demonstration, the project could be expanded to capture more than 1 million tonnes of process carbon dioxide per annum, helping establish a scalable pathway for low-carbon cement production in India and beyond.
Karan Adani, Director, Ambuja Cements, said: “The cement industry’s transition to a lower-carbon future will require bold thinking, technological innovation and collaboration across the value chain. Our partnership with Leilac reflects our commitment to evaluating next-generation technologies that can reduce process emissions while improving energy efficiency and supporting long-term sustainable growth. This initiative aligns with our vision of building world-class manufacturing operations for the future.”
Daniel Rennie, CEO, Leilac Limited, said: “Ambuja Cements operates one of the world’s largest and most advanced cement manufacturing networks. We’re delighted to begin this collaboration to deliver a commercial-scale project for low-cost, low-carbon cement production. Together, we aim to demonstrate an economic, replicable and future-proof solution for the global cement industry.”
A capital-light pathway to commercial-scale deployment
Leilac and Ambuja Cements will jointly undertake an engineering study to enable a go/no-go decision to proceed with construction. There is no capital required during the development phase and, if a decision is made to construct, no capital is required from Calix or Leilac during the construction, commissioning or operating of the plant. Further project milestones and timelines will be established during the engineering study.
Leilac will support the project’s development from its existing internal resources. Adani will support the project from its own internal, as well as external engineering resources. The go / no go decision is targeted in 2027, with a back stop date of June 2028. Prior to the go/no-go decision, Leilac and Ambuja Cements intend to negotiate a licence agreement for use of the Leilac technology.
Building momentum across Asia-Pacific
The Adani partnership was complemented by further progress across the Leilac pipeline, as Leilac announced another commercial cement project, this time with a new partner in East Asia.
This project aims to retrofit Leilac’s hybrid electric heating and carbon capture technology and supply approximately 100,000 tonnes per annum of captured process carbon dioxide for use by local industry.
Leilac will conduct a paid engineering study to assess the technical and economic viability of deploying the Leilac technology at a cement plant in East Asia. The engineering study is expected to be completed in the first half of the 2027 Financial Year. All project costs are to be funded by the customer. Further project phases are subject to mutual agreement following completion of the engineering study.
Strategic importance: scale, speed and economics
The two new projects in Asia provide potential low-cost and accelerated pathways to commercial deployment of the Leilac technology.
The projects have been structured to:
- Deliver immediate economic benefits through energy savings, productivity improvements and/or use of captured carbon dioxide
- Future-proof cement production through the Leilac technology’s ability to capture unavoidable carbon dioxide emissions.
- Deliver zero capital, customer funded commercial deployment pathways
- Provide a scalable, replicable model for deployment of the Leilac technology.
This approach aligns with Calix’s broader strategic focus on projects that combine near-term economic returns with a clear route to large scale deployment and climate impact.
Leilac project prioritisation
With two cement projects now progressing with no capital requirements, Leilac has undertaken a strategic review of project prioritisation across its project portfolio.
Calix and Leilac are increasing their focus on a capital-light, customer-funded commercial deployment model, prioritising:
- Projects requiring no capital contribution from Calix or Leilac
- Near-term revenue generation opportunities
- Fast pathways to commercial-scale deployment.
Priority is given to projects that meet these criteria, including projects with the Adani Group’s Ambuja Cements, Leilac’s new cement partner in East Asia, and the carbon dioxide removal project supported by funding from Frontier.
