The Calix Ltd (ASX: CXL) share price is swinging between red and green today after the company landed another chunk of funding. Amid the payday news, investors are undecided on which direction to take in the green technology developer.
At the time of writing, Calix shares are up 0.28% at $7.05, having earlier sunk as low as $6.75. The positive move stands out among a sea of red on Thursday as the S&P/ASX 200 Index (ASX: XJO) nosedived in sympathy to a bloody session on Wall Street last night.
Let's take a closer look at the news keeping Calix's head above water today.
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Money rains down for green tech
Only a few days ago, it was revealed that Calix would be receiving government funding in partnership with Boral Limited (ASX: BLD) to help reduce the materials company's emissions. That grant was worth $30 million.
However, today involves a different materials company and a different amount of funding. Though, the reason for the latest government grant is quite similar.
According to the release, Calix will receive $11 million from the government's carbon capture, use, and storage (CCUS) hubs and technologies program to bring low emissions lime production to Adbri Ltd (ASX: ABC). The additional government funding bodes well for the Calix share price.
Much like with Boral, the funding is intended to go towards developing a low emissions lime kiln using Calix's 'low emissions intensity lime and cement' (LEILAC) technology. When constructed, the proposed plant in Kwinana, Western Australia, would be the world's first commercial-scale low emissions lime production.
Commenting on the announcement, Calix managing director and CEO Phil Hodgson said:
A few years ago, I doubted a world-first commercial scale application of our technology would have been built in Australia, and as a result our efforts were concentrated offshore. However, with the support of the Federal Government and the Technology Investment Roadmap, the HILT-CRC, and companies such as Adbri, who are now starting to lead low emissions efforts, it is now a reality.
Additionally, the company confirmed this morning that it has received $5.19 million as part of the Federal Government's research and development tax incentive.
How has the Calix share price performed?
The Calix share price has been outperforming the broader ASX 200 so far this year. Whether this is a byproduct of increased investor interest as emission reduction becomes more topical, or a consequence of several government grants, the situation is a positive for Calix shareholders.
Since the start of the year, shares in the company have returned almost 9%. Meanwhile, the ASX 200 is down nearly 7% — representing an outperformance of 16%.
