Key Highlights

  • Calix executed a Heads of Agreement with Perdaman establishing it as the hydrogen development partner for the Zesty Green Iron Demonstration Project.
  • Perdaman will deliver engineering and design of a hydrogen Supply solution required to support a Final Investment Decision.
  • Calix has granted Perdaman a 12-month exclusivity period related to developing the hydrogen supply solution for the project.
  • Future hydrogen supply arrangements for the operational phase of the Zesty Project remain subject to further negotiation.

Calix Limited (ASX:CXL) share price was trading at $0.28, up 3.64% or $0.0100 on the day, as at 27 August 2026, 10:52am AEST, after announcing it has executed a Heads of Agreement with Perdaman, a Western Australian-headquartered multinational organisation, to develop the hydrogen supply solution for its Zesty Green Iron Demonstration Project in Western Australia. The agreement establishes Perdaman as Calix's hydrogen development partner for the project, with Perdaman set to deliver the engineering and design of a hydrogen supply solution required to support a Final Investment Decision.

Under the terms of the agreement, Calix has granted Perdaman a 12-month exclusivity period related to developing the hydrogen supply solution for the Zesty Project, and the two companies will work collaboratively to engage with project Stakeholders to progress the project towards FID. Future hydrogen supply arrangements for the operational phase of the project remain subject to separate negotiation.

Hydrogen as a Critical Path Item for the Zesty Project

The Zesty Project aims to demonstrate the production of hydrogen direct reduced iron, or H-DRI, from multiple iron ore sources and producers at a commercially relevant scale, enabling testing of the Zesty H-DRI product in multiple steelmaking pathways. Hydrogen is a key input to the project, used as a reductant in combination with electric heating to produce H-DRI from iron ore. The company said establishing a hydrogen supply solution at the project's location, at suitable volumes, time frames and cost, is a critical milestone required for the Zesty Project to reach FID.

Perdaman has developed capabilities in hydrogen-related industrial production through its energy businesses and major projects in Western Australia. This includes Project Ceres, a multi-billion dollar project aiming to become Australia's largest domestic ammonia and urea Manufacturing facility, which has been awarded Major Project Status by the Australian Government and designated a Project of State Significance by the Western Australian Government, alongside having received Australian Government funding. Perdaman is also developing Project Helios, creating hydrogen as feedstock for low carbon fertiliser, which has been shortlisted for funding from the Australian Renewable Energy Agency's Hydrogen Headstart program.

Engineering Study to Support Investment Decision

Under the binding terms of the Heads of Agreement, Perdaman will further develop the design basis for hydrogen supply to the Zesty Project via an engineering study, building on preliminary engineering work previously undertaken by Perdaman for the project. The study aims to develop a hydrogen supply solution with sufficient detail and cost certainty to enable a Final Investment Decision.

Subject to completion of agreed deliverables, Calix will pay Perdaman a fixed fee to complete the engineering study, with Perdaman also contributing to the cost of the study, this contribution payable by Calix in certain circumstances, including if the Zesty Project does not progress following FID. The engineering fee sits within the current project budget and is commercial in confidence. Each party retains ownership of its background intellectual property, while new intellectual property related to the hydrogen supply solution will be owned by Perdaman and may be used by Calix for the Zesty Project under a non-exclusive, perpetual royalty-free licence.

Strategic Context and Management Commentary

Calix said the Partnership with Perdaman adds capability and expertise to the Zesty Project, complementing its existing strategic partnership with iron ore producer Rio Tinto and Australian Government funding via the Australian Renewable Energy Agency. Managing Director and CEO Phil Hodgson said developing a viable hydrogen supply solution is a critical step towards enabling the Zesty Project to reach FID, describing the establishment of Perdaman as the hydrogen partner as an important milestone that brings the company closer to demonstrating a low-emissions iron production solution in Western Australia.

Perdaman Founding Chairman and Managing Director Vikas Rambal said the company's vision aligns with the Zesty Project, and that Perdaman would bring its hydrogen expertise and delivery capability to help make the project a success. During the 12-month exclusivity period, Calix and Perdaman will collaboratively engage with stakeholders to progress the Zesty Project towards FID and intend to establish a hydrogen supply arrangement for the duration of the project.

Conclusion

Calix's Heads of Agreement with Perdaman addresses a critical path item for the Zesty Green Iron Demonstration Project by securing a dedicated hydrogen development partner ahead of a Final Investment Decision. With Perdaman bringing established hydrogen-sector experience through its Project Ceres and Project Helios developments, and the engineering study now underway to build on prior preliminary work, the project's progression toward FID will depend on the outcome of this study and the subsequent negotiation of a hydrogen supply arrangement for the project's operational phase.