LEILAC Group receives EUR15m investment

Carbon Direct Capital Management has invested EUR15m for a 6.98 per cent equity stake in Calix subsidiary, the LEILAC Group, which is dedicated to the commercialisation and ongoing development of Calix’s LEILAC CO₂ capture technology. Calix will continue to own the remaining 93 per cent of the LEILAC Group.

In addition, as part of the transaction, Calix has entered into a licence agreement with the LEILAC Group under which it will retain 30 per cent of royalties earned by the LEILAC Group from deployment of the technology, regardless of Calix’s equity stake in the LEILAC Group. The LEILAC Group will operate autonomously, with its own management team and a Board composed mostly of Calix directors, with one appointee nominated by Carbon Direct.

The LEILAC Group, comprising Calix (Europe) Ltd (UK) and its subsidiaries, is the exclusive licensee of Calix’s Low Emissions Intensity Lime and Cement (LEILAC) CO₂ capture technology.  LEILAC technology was successfully piloted at 25,000tpa scale at HeidelbergCement’s plant in Lixhe, Belgium, and is being scaled up to 100,000tpa scale in the “LEILAC-2” project for a HeidelbergCement plant in Hanover, Germany. Further commercial pilot plants for lime production are under development with Tarmac, the UK division of CRH, and AdBri in Australia, among others.

Along with existing capital already invested in the LEILAC Group, Carbon Direct’s investment will be used by the LEILAC Group to accelerate and continue to de-risk deployment of the LEILAC technology, both technically and commercially.