The Calix Ltd (ASX: CXL) share price is gaining today. At the time of writing, shares in the technology company are trading for $2.69 – up 4.67%.
The positive price movement comes after Calix announced a project it’s involved in will receive nearly $40 million in government funding.
Let’s take a closer look.
Calix share price boosts on government funding
In a statement to the ASX, Calix says it will receive a share of $39 million in government funds for its role in “a low carbon research project.”
Calix is a key partner in the Heavy Industry Low-carbon Transition Cooperative Research Centre (HILT CRC). The Centre aims to reduce carbon emissions in Australia’s heavy industries.
The government funding will boost the research group’s coffers to more than $210 million in cash and in-kind contributions over the next 10 years.
Calix says it will continue to produce technologies to bring down emissions in cement and bauxite production as part of its work with the group.
Industrial partners in the project include Boral Limited (ASX: BLD), Fortescue Metals Group Limited (ASX: FMG) and South32 Ltd (ASX: S32).
The big cash boost seems to be interesting investors, thus, lifting the Calix share price.
Management commentary
Calix Managing Director Phil Hodgson said:
We are excited to be a key partner in the HILT CRC and welcome today’s funding from the Australian government. It will provide opportunities for Calix to grow our expertise and network with some of Australia’s largest heavy industrial and mining companies, while helping to develop CO2 hubs, fast track projects and Australia’s long-term capability for low-carbon projects.
More specifically, it is a chance for us to demonstrate the technology developed for CO2 mitigation in the production of cement and lime through our European LEILAC-1 and 2 projects in an Australian setting, as well as explore other more sustainable applications for our technology in heavy industry, backed by this impressive team of researchers and industrial participants.
Calix share price snapshot
During the past 12 months, the Calix share price has increased by more than 250%. In fact, in just the last 6 months, shares in the company have increased in value by 149%.
Calix has a market capitalisation of $425 million.
The post The Calix (ASX:CXL) share price is rising 5% today. Here’s why appeared first on The Motley Fool Australia.
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