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Welcome to issue number 17 of the Calix Newsletter

The first few months of 2016 have been very busy for the company, with some great early successes.

 

Phil Hodgson, CEO

Our European LEILAC (Low Emission Intensity Lime and Cement) project was officially launched in early January. Pre-financing was received from the EU in February and the pre-Front End Engineering and Design work is well underway. An article on LEILAC appears in this newsletter, as we are about to launch an official “LEILAC” website www.leilac.org.uk. From mid-April, Calix will have 4 staff located in Europe to develop the project and also form a solid base to develop our other businesses there.

 

Our operations in Australia have also had an excellent run. We achieved record production tonnes in February and record sales tonnes in March, and our sales revenues to January were already ahead of last year’s total. 

 

Our technical development and recognition also progressed well, with the winning of another Australian Water Association Innovation Forum Award for our work into increased biogas production using our ACTI-Mag™ product, and an EU Horizon 2020 “SME Seal of Excellence” award for our BOOSTER-Mag™ strategy development in Europe. Our AQUA-Cal+™ development and PROTECTA-Mag™ development for sewer asset protection continues to return excellent results and an article on each appears in this newsletter.

 

Our challenges ahead in 2016 remain as per our strategy – intense focus on accelerating revenue generation, innovating quickly, pursuing value-add JVs and licenses, and continuing to develop our core technology for longer term value. On behalf of the Calix team we continue to thank our shareholders and stakeholders for their on-going support and hope you find this latest newsletter interesting and inspiring. 

RECENT MILESTONES

The LEILAC (Low Emissions Intensity Lime And Cement) Project Was Officially Launched In Early January.

 

The project aims to apply and demonstrate a breakthrough technology that will enable the cement and lime industries to reduce their carbon footprint significantly. The consortium delivering this ambitious project has successfully secured €12 million in funding over five years from the European Commission Horizon 2020 Grant programme and will also contribute a further €9 million towards the project.

 

Led by Calix, the consortium comprises HeidelbergCement, Cemex, CRHTarmac, Lhoist, Amec Foster Wheeler, ECN, Imperial College, PSE, Quantis and the Carbon Trust. The cement industry alone accounts for up to 7% of global carbon dioxide (CO2 ) emissions, making it among the largest industrial contributor, while the lime sector has the highest CO2 intensity relative to turnover.

 

However, around 60% of the total CO2 emissions from cement and lime plants are released directly, and unavoidably, from the chemical reaction in the production process. Calix’s Direct Separation technology uses indirect heating in which the process CO2 and furnace combustion gases do not mix. This re-engineering of the existing process flows enables the capture of almost pure CO2 released from the limestone – without significant additional costs or increased energy use. The technology is complementary with other carbon capture methods already developed in the power and cement sector, such as oxyfuel, and can make use of alternative fuels.

 

In enabling the application of this technology LEILAC will develop, build and operate a Direct Separation pilot plant which will capture over 95% of the process CO2 emissions. During the first three years, the project will focus on finalising the design of the pilot, to be constructed at the HeidelbergCement plant in Lixhe, Belgium once the necessary permits have been secured.

 

The pilot will then undergo two years of extensive testing in a standard operational environment, at a feed rate capacity of 240 tonnes per day of cement meal and 200 tonnes of ground limestone respectively. Fundamental research on the process demands and performance will be carried out to demonstrate that the technology works sufficiently and robustly enough to be scaled up to full operational use. The project results will be shared widely at key intervals during the testing.

 

For further information about the project please visit www.leilac.org.uk 

WATER & WASTE WATER

Innovative and Durable Manhole Coating

 

Manhole corrosion protection using the Calix PROTECTA-Mag™ technology has been identified as one of our most exciting growth prospects this year. Following development and award recognition in 2015 by the Australian Water Association’s Innovation Forum and Australian Business Awards, Calix’s PROTECTA-MagTM technology for sewer manhole protection is gaining wide-spread interest.

 

In February, an extensive mailing campaign was undertaken to introduce the technology to more
than 600 councils and waterbodies across Australia and New Zealand. There was immediate interest from around 10 prospects. The mailing has been followed up by targeted phone calls and to date, around 20 more interested prospects have been added to the list, with new calls coming in each week.

 

In March, manhole coating demonstrations were carried out in Victoria at South East Water, Yarra Valley Water, Coliban Water and Central Highlands Water. As of April, we are in discussion with other councils around the country for more demonstrations. It all started in mid-2015, when a single manhole was coated for the City of Gold Coast. Calix has been carrying out monitoring since then, with excellent results to date.

 

These results are encouraging and I was impressed with the coatings durability – look forward to the further test results” – Gold Coast Council Asset Manager.

 

 

 

 

WATER & WASTEWATER

ANOTHER BUSY YEAR WITH AWARDS & CONFERENCES FOR ACTI-Mag™ AND PROTECTA-Mag™

In January, Calix exhibited the International Water Summit (IWS) in Abu Dhabi, and was selected to present the PROTECTA-Mag™ technology at the Innovation Pitch during the event. The main aim for participating in the IWS was to introduce the technology to the MENA (Middle East and North Africa) countries. Calix received a good response and is currently in discussion with interested parties in the UAE and Saudi Arabia. Calix was also a Prime Sponsor of the 10th NSW Water Industry Operations (WIOA) Conference and Exhibition, in Newcastle.

 

The conference brought together a wide range water industry personnel involved in the operation and maintenance of urban, rural and industrial water related infrastructure for the management, conveyance, treatment, discharge and reuse of water and trade wastes. Once again, the event was a great success for Calix and our booth was kept busy with quality leads for both PROTECTA-Mag™ and ACTI-Mag™.

 

Calix will be speaking and exhibiting at the Ozwater’16, Australia’s premier international event for all water professionals, at the Melbourne Convention and Exhibition Centre, 10-12 May 2016. Come and talk to us!

 

Calix is also a Prime sponsor, paper presenter and an exhibitor at the 41st QLD WIOA conference in Rockhampton – 1 & 2 June and the 79th VIC WIOA conference in Bendigo – 31 Aug & 1 Sept.

 

 

 

R&D UPDATE

AQUA-Cal+™ – Yield Boosting Water Conditioner

 

AQUA-Cal+™ is a stabilised suspension of approximately 60% by weight of high surface area magnesium hydroxide with some calcium carbonate. AQUA-Cal+™ has been developed as a result of our extensive work with water treatment. It has been developed for the aquaculture industry and successfully trialled as a water conditioning agent with crayfish hatcheries, prawns, salmon hatcheries, tilapia, sea bass, silver perch, trout and milkfish.

 

Calix Limited, along with its Asian partners Maha Chemicals, Honlex Jones and ACTI-Mag™ Asia, has recently undertaken a number of field trials in both prawns and fin fish with consistent positive results:

 

• Reduces turbidity

• Precipitates Iron and other heavy metals

• Stabilizes pH

• Stabilizes and enhances alkalinity

• Reduces hydrogen sulphide

• Digests sludge giving clean pond bottom

• Increases Phytoplankton (natural food for prawns and some fin fish)

 

AQUA-Cal+™ works as a water and pond bottom conditioner, clarifying the water, controlling pH and releasing alkalinity as required to aid in digestion of organic matter. With stabilized conditions in the pond, stress is reduced and water conditions are improved, which in turn increase both health and productivity of fish and prawns. Trials are ongoing accross South East Asia with various species including giant tiger prawns, white pacific shrimp, milk fish, tilapia, grouper and barramundi. We are observing substantial success in fingerling grow-out for all species and early growth for prawns and shrimps.

 ⇑ Pond with heavy Iron.

 

⇑ Pond after AQUA-Cal+™ treatment.

 

⇑ Sediment testing from sludge in prawn pond - AQUA-Cal+™ on the right.

 

INTRODUCING

Robert Van Merkestein - Business Manager BOOSTER-Mag

 

Rob joined Calix in October 2015, primarily to commercialise BOOSTER-Mag™, a new product developed by Calix for use in agriculture around the world. Rob started his career with the CSIRO, initially developing environmental applications for MgO powder derived from mineral Magnesium Carbonate, before developing a process to manufacture a more user-friendly liquid form – Magnesium Hydroxide Liquid. This work led to the establishment of Australia’s first production facility of MHL.

 

Rob then joined the private sector where he helped establish and manage a Liquid Magnesium Hydroxide business focussed on developing and commercialising a suite of new solutions. After over 15 years working on this technology, he decided to move on and started working on several other new and innovative technologies. Rob’s worked extensively in Australia and throughout Asia within the water sector. He had many opportunities to travel and lived in Beijing for a few years with his family. He married Michelle and has two boys – Remy, 9 and Lucas, 12. He doesn’t have much time for hobbies but does enjoy the “surprise” when a bottle of red from his cellar has actually improved.