Calix Ltd. has completed the first milestone under the Australian Renewable Energy Agency (ARENA) grant agreement for the Zesty green iron demonstration project.
Calix was awarded the AU$44.9 million grant from ARENA in 2025 to build a green iron demonstration plant using its Zero Emissions Steel Technology (Zesty).
The completion triggers a first grant payment of AU$2 million to Calix, with a further AU$42.9 million of payments outstanding under the grant.
The AU$2 million grant payment follows a AU$3 million payment from Rio Tinto for the project, with over AU$32 million of cash and in-kind contributions from Rio Tinto remain outstanding as part a joint development agreement.
The demonstration plant has a targeted capacity to produce 30,000 tonnes per annum of hydrogen direct reduced iron, or hot briquetted iron.
The project 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 support the development of green iron industry.
The project will also complete an engineering study for a commercial scale Zesty plant to facilitate future commercial deployment.
Calix’s Zesty process uses a combination of electric heating and hydrogen reduction to produce green iron and ultimately, green steel.
Zesty aims to provide the lowest cost pathways to green iron and steel by enabling flexible operations that are compatible with variable renewable energy sources and allowing for the minimum hydrogen use of 54 kilograms per tonne of iron.