- 01Calix/Leilac, Ambuja JDA on Sanghi cement decarbonisation.
- 02Hybrid electric heating + carbon capture; >1 Mtpa CO2.
- 03No upfront capex; Ambuja funds after go/no-go.
Calix Limited (ASX: CXL) subsidiary Leilac has signed a joint development agreement (JDA) with Adani Group company Ambuja Cements for a commercial-scale cement decarbonisation project in India.
The agreement covers the proposed deployment of Leilac technology to assess low-cost, low-carbon cement production using hybrid electric heating and carbon capture at Ambuja Cements’ Sanghi cement plant in Gujarat.
Subject to successful demonstration, the project could expand to capture more than 1 million tonnes of process carbon dioxide per annum.
The JDA is non-exclusive and has a term of up to 24 months, with either party able to terminate on 30 days’ notice.
Calix will retain all intellectual property relating to its core technology, while later project phases remain subject to mutual agreement.
Commercial Deployment Pathway
Leilac and Ambuja Cements will jointly develop the project through an engineering study designed to support a go/no-go construction decision, with Leilac to retrofit the technology with minimal downtime through a phased deployment model.
The first commercial demonstration phase will evaluate the technology’s ability to reduce emissions, lower fuel consumption, and increase the use of renewable electricity in cement manufacturing.
Calix confirmed neither it nor Leilac will be required to make a capital contribution to the project at any stage.
The partners intend to negotiate a technology licence agreement before any construction decision, with Ambuja Cements to fund all project costs after a successful decision to proceed.
Sanghi Plant Opportunity
The project is targeting Ambuja Cements’ Sanghi plant in Sanghipuram in Gujarat’s Kutch district, which has total clinker production capacity of 6.6Mtpa.
The project gives Calix a route to demonstrate its technology within one of the world’s largest cement markets and alongside a producer with annual cement production capacity of approximately 109Mt across Ambuja Cements and ACC.
Calix and Leilac are pursuing a capital-light commercial deployment model based on customer-funded projects and royalty revenues under technology licence agreements.
The Ambuja Cements agreement is Leilac’s first cement project to meet the company’s priority criteria of requiring no capital contribution while providing an accelerated path to commercial scale.
Partners Welcome Collaboration
Ambuja Cements director Karan Adani said the cement industry would need bold thinking, innovation, and collaboration to move toward a lower-carbon future.
“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,” Mr Adani said.
“This initiative aligns with our vision of building world-class manufacturing operations for the future.”
Leilac chief executive officer Daniel Rennie said his company looked forward to collaborating with one of the world’s largest and most advanced cement manufacturing networks.
“Together, we aim to demonstrate an economic, replicable, and future-proof solution for the global cement industry,” he added.
Get the wire before the market opens.
The ASX small-cap stories that matter, filed before 9am AEST. Curated by the Small Caps desk.