Calix awarded CCU demonstration grant

Highlights:

• Calix has been awarded a US$15 million grant from the Australian Government to reimburse up to 50% of the expenditure to build a commercial demonstration electric calciner for near zero emissions lime and cement in South Australia, subject to achievement of Project milestones.
• The novel, renewably powered CCU project will create two revenue streams via a near zero emissions lime product and the sale of captured CO₂ for use as a chemical feedstock.
• The Leilac technology will be used to capture up to 20 000 tpy of process CO₂ emissions produced unavoidably in the manufacture of cement and lime.
• Up to 15 000 tpy of CO₂ will be sold to the SM1 project to produce green methanol. Additional captured CO2 may be supplied to other users in local industry.
• The SM1 project is being developed by a consortium of partners, including Vast² and German energy company Mabanaft³, under the Australian-German funded HyGATE initiative.
• Calix will collaborate with its partners on the operation of the electric calciner and sale of its lime products.
• A second phase of the project aims to develop a novel cement making process for near zero emissions cement.

Demonstrating zero emissions lime and cement

Lime is an essential material used in the iron & steel, alumina, paper, pharmaceuticals, food, farming, and chemical industries, and demand for lime in Australia is predicted to grow by 57% between 2022 and 2050⁴. Like cement, lime is made from the processing of limestone to form quicklime (calcium oxide). When limestone is heated in this process, carbon dioxide is unavoidably released directly from the raw material. This ‘process’ CO₂ accounts for ~60% – 70% of the emissions released during the production of lime^{4, 5}. Collectively, lime and cement account for ~8% of global greenhouse gas emissions (GHG)⁶.

The 'Zero Emissions Intensity Lime and Cement Technology Built in Australia Project’ (ZETA Project or Project) will use an electric and renewably powered version of the Leilac technology to efficiently capture unavoidable process CO₂ emissions and produce near zero emissions lime and cement.

In phase 1 of the Project, the Leilac technology will be used to produce ~15 000 tpy of near-zero emissions lime and capture of up to 20 000 tpy of high purity CO₂. Calix will collaborate with its partners on the operation and sale of the zero emissions lime products. Up to 15 000 tpy of CO₂ captured by the Leilac technology will be sold to the SM1 project in Port Augusta, South Australia, with any excess captured CO₂ available to be supplied to local industrial CO₂ users in South Australia. The Project will also train plant operators to support future projects.

In a second phase of the Project, the ZETA programme will aim to expand production to include the processing of cement raw meal to a near-zero emissions cement clinker product, with captured CO₂ again supplied for use. By incorporating cement clinkering as an additional process in the Leilac technology, the Project aims to develop a novel route to zero emissions clinker production that reduces cost, energy consumption and footprint.

Demonstrating cost-effective CCUS

The ZETA Project aims to deliver revenue from two streams: a near zero emissions lime product and supply of captured CO₂ for use as a chemical feedstock. Calix’s electric calcination technology also enables fast start-up and shut down, and highly flexible production rates. The ZETA Project aims to leverage this capability to match production to demand and renewable energy costs. Developing this capability is intended to support more cost-effective electric mineral processing and support future grid load-balancing applications.

The ZETA Project’s multiple revenue streams, efficient electric heating and flexible operations, coupled with the support from the Australian Government’s Carbon Capture Technologies Programme, aim to deliver a project with positive economics despite being a first-of-a-kind demonstration.

Supporting decarbonisation of multiple hard-to-abate industries

By capturing and using unavoidable process emissions, the ZETA Project aims to demonstrate innovative pathways to decarbonise multiple hard-to-abate industries.

For industries such as cement and lime, where the majority of emissions are unavoidably released directly from the raw material, cost-effective CCUS is an essential part of the sector’s decarbonisation strategy^7,8. The use of captured CO₂ eliminates the need for CO₂ transport and storage infrastructure, and potentially provides an additional revenue source to decarbonisation projects. The production of near-zero emissions lime is also an important enabling capability to produce green metals, particularly near-zero emissions steel and aluminium.

Using captured CO₂ as a feedstock to produce low-carbon fuels can also support the decarbonisation of hard-to-abate transport sectors such as aviation and shipping. Green methanol can be synthesised from renewable energy, green hydrogen and captured industrial CO₂. Methanol is a viable low-carbon alternative to diesel for the shipping industry, a pre-cursor for sustainable aviation fuel, and a versatile green hydrogen carrier.

The Solar Methanol 1 project

SM1 aims to develop a world-first methanol production demonstration plant, producing ~7500 tpy of methanol. SM1 is being developed by a consortium of members, including Vast, Mabanaft and Calix, and has been awarded funding of ~US$40 million as part of the German-Australian Hydrogen Innovation and Technology Incubator (HyGATE) initiative.⁹

The SM1 project has passed numerous milestones since it was announced, including receipt of planning consent¹⁰ and the formation of a Joint Development Agreement between Vast and Mabanaft¹¹.

Next steps and timelines

The ZETA Project aims to develop and demonstrate cost-effective solutions to manufacture sustainable lime, cement and future fuels, and is being developed in parallel to SM1, with the quantity and timing of CO₂ supply targeted to match the demand for methanol production. The material Project milestones for phase 1 are listed below, and Project funding terms under the grant agreement are provided in the Appendix.

Calix CEO and Managing Director, Phil Hodgson said: “Calix is delighted to have been awarded funding under the Australian Government’s Carbon Capture Technologies Programme to produce near-zero emissions lime and cement. This Project aims to demonstrate solutions for several national priorities identified in the Australian Government’s Future Made in Australia programme.

“Calix’s renewably powered technology platform can electrify mineral processing and capture unavoidable emissions to enable carbon-intensive industries like cement and lime to reach net zero. Zero emissions lime will also be an important enabling material for the development of an Australian green metals industry for green steel and aluminium.

“Additionally, by combining captured CO₂ with Australian sunshine in collaboration with our partners in the SM1 project, we aim to demonstrate a low-cost decarbonisation pathway for cement and lime and a novel way to make low-carbon transport fuels.

“It is exciting to see Australian technology companies, supported by Australian Government funding, collaborating to take advantage of the unique comparative advantages Australia can have in a decarbonising global economy.”

Vast CEO, Craig Wood said: “We are delighted to be partnering with Calix on SM1, using CO₂ captured from their near zero emissions lime plant to produce green methanol to decarbonise the maritime sector. It is excellent to see the Australian Government supporting companies like Vast and Calix as we develop solutions to decarbonise shipping and aviation globally.

“Coming against the backdrop of the Australian Government’s Future Made in Australia programme, which aims in part to unlock a domestic renewable liquid fuels manufacturing industry, there is real momentum for Australia to become a world leader in this space.”

Mabanaft’s Director New Energy, Philipp Kroepels said: “We believe that government support, such as that provided by Australia and Germany through the HyGATE initiative, is essential to stimulate development of low-carbon, sustainable fuels, including methanol. Our joint project with Calix and VAST will certainly take us forward in developing viable solutions for decarbonisation.”

1. Calix ASX Announcement. Calix part of Australian-German consortium awarded funding to manufacture sustainable fuels from captured CO₂. 30 January 2023.
2. https://www.vast.energy/.
3. https://www.mabanaft.com/en/about-us/mabanaft-group/.
4. Decarbonisation Pathways for the Australian Lime Sector. VDZ. 2023.
5. Decarbonising the lime industry: State-of-the-art. Renewable and Sustainable Energy Reviews. 168. 1127652022. 2022.
6. Trends in Global CO₂ emissions. Netherlands Environmental Assessment Agency. The Hague, 2016.
7. Decarbonisation Pathways for the Australian Lime Sector. VDZ. 2023.
8. The GCCA 2050 Cement and Concrete Industry Roadmap for Net Zero Concrete.
9. Calix ASX Announcement. Calix part of Australian-German consortium awarded funding to manufacture sustainable fuels from captured CO₂. 30 January 2023.
10. Vast Press Release: Vast Receives Planning Consent for CSP-powered Solar Methanol Project in Port Augusta. 30 May 2024.
11. Vast Press Release: Vast and Mabanaft advance Port Augusta green methanol project to unlock Australia’s green fuels industry. 13 June 2024.

Read the article online at: https://www.worldcement.com/product-news/23072024/calix-awarded-ccu-demonstration-grant/