ARENA funding for ZESTY Demonstration Plant

• Calix executes $44.9m ARENA grant agreement to build a ZESTY Green Iron Demonstration Plant
• The plant will have a capacity to produce 30,000 tonnes per annum of hydrogen direct reduced iron (H2-DRI) or hot briquetted iron (HBI)
• The project will also complete an engineering study for a commercial scale ZESTY plant

Calix Limited (ASX: CXL) has executed a $44.9 million grant agreement with the Australian Renewable Energy Agency (ARENA) to build a ZESTY Green Iron Demonstration Plant. The Demonstration Plant has a targeted capacity to produce 30,000 tonnes per annum of hydrogen direct reduced iron (H2-DRI) or hot briquetted iron (HBI). The plant is designed to deliver toll processing of iron ores from a range of producers to support the ongoing viability of Australian iron ore in a low emissions steel value chain and the development of a green iron industry in Australia. The project will also complete an engineering study for a commercial scale ZESTY plant to facilitate future commercial deployment. The location of the Demonstration Plant remains commercial in confidence, and a Final Investment Decision is targeted for FY26. Subject to matched funding being secured, procurement and construction is targeted to commence in 2026, followed by a staged commissioning and operations phase planned to commence in 2028. The ARENA grant provides up to 50% of the project budget, and Calix intends to finance the remaining budget through equity funding from strategic and/or financial investors in a ZESTY subsidiary business, and/or project financing.

The Demonstration Plant Project follows the ARENA funded pilot-scale trials that proved ZESTY's potential to produce economic green iron from a range of iron ores, including lower grade ores from the Australian Pilbara region. The Demonstration Plant's toll processing of multiple ore types and grades is designed to facilitate testing of the H2-DRI / HBI product by multiple steelmakers using different steelmaking routes, demonstrating ZESTY's potential to provide flexible decarbonisation pathways for the industry.