• Calix and Rio Tinto execute Joint Development Agreement for $35m support
• Demonstration Plant to be located in Kwinana, Western Australia
• Supports commercialisation of Calix's Zesty zero-emissions steel technology

Calix Limited (ASX: CXL) has executed a Joint Development Agreement (JDA) with Rio Tinto, one of the world's leading iron ore producers, to provide over $35m of cash and in-kind support for the demonstration of Calix's Zero Emissions Steel Technology (Zesty) in Kwinana, Western Australia, and to help enable the future commercialisation of the Zesty technology. Under the terms of the JDA, Rio Tinto will contribute $8m in cash and further in-kind contributions to support the Zesty Green Iron Demonstration Plant project. The in-kind contributions will assist with the successful development, commissioning and operations of the Demonstration Plant. The JDA also outlines the principles by which Rio Tinto may take up shares in a Zesty subsidiary business and use or market the Zesty technology. The Zesty Demonstration Project is also supported by a grant of up to $44.9m from the Australian Renewable Energy Agency (ARENA). Calix's Zesty technology uses a combination of electric heating and hydrogen reduction to produce green iron and ultimately, green steel, with the aims of supporting 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 Zesty Green Iron Demonstration Plant is designed to produce up to 30,000 tonnes per annum of hydrogen direct reduced iron (H2-DRI) or hot briquetted iron (HBI) from a range of iron ore sources.

The JDA is a significant step towards the commercial and financial commitments required to progress the Zesty Demonstration Project to a Final Investment Decision, expected in 2026.