Calix Partners with Perdaman to Develop Hydrogen Supply for Proposed Zesty Demo Plant

Industrial technology company Calix (ASX: CXL) has partnered with multinational group Perdaman to develop the hydrogen supply solution for its proposed zero-emissions steel technology (or “Zesty”) demonstration plant in Perth.

Under the terms of the agreement, Perdaman will commence an engineering and design study to investigate a hydrogen supply solution detailing volumes, timeframes, and costs to enable a final investment decision (FID) before year end.

Subject to completion of agreed deliverables, Calix will pay Perdaman a fixed and undisclosed fee to complete the study and Perdaman will contribute to the costs under certain circumstances, including if project does not progress following FID.

Each party will retains ownership of its background intellectual property and any new IP related to the development of a hydrogen supply solution will be owned by Perdaman and may be used by Calix for Zesty under a non-exclusive, perpetual royalty-free licence.

Advancing Zesty Plant

The new partnership complements a $35 million joint development agreement with Rio Tinto (ASX: RIO) to advance and commercialise zero-emissions green technology and $44.9m in Australian Renewable Energy Agency (ARENA) funding for the novel demonstration plant.

Under the Rio deal, the iron ore giant will provide a combination of $8m in cash and further in-kind contributions towards development of the plant in Kwinana, 40 kilometres south of Perth.

Rio could also provide up to 10,000 tonnes of a range of Pilbara iron ores for use in plant commissioning and operations and bring in potential users of the Zesty green iron product for material testing and downstream processing into steel.

The ARENA funding was granted in July 2025 and provides up to 50% of the project budget, subject to matched contribution and key project milestones being achieved.

Calix confirmed it has the resources and balance sheet to progress the project through to year end and intends to meet the remaining costs by equity funding from strategic investors in a Zesty subsidiary business or project financing.

Low-Emissions Steel Value Chain

The Zesty project is based on the development of a plant powered by renewable electricity and hydrogen which can produce up to 30,000 tonnes of low-carbon hydrogen direct reduced iron and hot briquetted iron each year.

It aims to support the ongoing viability of Australian iron ore in a low-emissions steel value chain and the development of a national green iron industry.

Zesty leverages Calix’s proprietary flash calcination technology—a combination of electric heating and hydrogen reduction—to produce green iron and ultimately, green steel.

Extensive pilot-scale testing over 130 test runs using nine different Australian ores across a range of grades and particle sizes achieved a level of metallisation suitable for downstream use in an electric smelter or blast furnace.

Additionally, several tests reached sufficient metallisation levels for feed directly to an electric arc furnace.

Critical Step Toward FID

Calix managing director Phil Hodgson said the development of a viable hydrogen solution was a critical step in enabling Zesty to reach FID.

“Establishing Perdaman as our hydrogen partner is therefore an important milestone, adding engineering capability and hydrogen-sector expertise to the project,” he said.

“The partnership provides a clear pathway forward and brings us a step closer to demonstrating a globally leading solution for low-emissions iron production in Western Australia.”

Perdaman founding chair Vikas Rambal said the company was proud to be part of a unique project that could transform the nation’s iron ore industry.

The engineering study has a 12-month exclusivity period, during which time Calix and Perdaman will engage with stakeholders to progress the project towards FID, while future hydrogen supply arrangements for Zesty’s operational phase remain subject to negotiation.