Guess which ASX 300 stock is rocketing 15% today

What is getting investors excited today? Let's find out.

| More on:
A wide-smiling businessman in suit and tie rips open his shirt to reveal a green t-shirt underneath

Image source: Getty Images

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

Calix Ltd (ASX: CXL) shares are catching the eye on Tuesday with a very strong gain.

In afternoon trade, the ASX 300 stock is up 15% to $1.47.

Why is this ASX 300 stock rocketing?

Investors have been scrambling to buy the environmental technology company's shares since the release of an update this morning.

That update relates to the progress it is making with its Direct Air Capture (DAC) projects in partnership with Heirloom.

According to the release, under an exclusive technology licence agreement, Calix's subsidiary Leilac will provide its electric calcination and carbon capture technology to two Heirloom DAC facilities capable of removing up to ~320,000 tons of carbon dioxide from the atmosphere per year.

The ASX 300 stock notes that carbon dioxide removal is predicted to play a critical role in meeting global climate commitments. An estimated 1-10 billion tonnes of atmospheric CO2 removal per year will be required to mitigate excess emissions and limit global warming.

What's next?

Heirloom is taking things slowly. It will first build a facility that will have a CO2 removal capacity of ~17,000 tons per year. That is expected to be operational in 2026.

A second ~300,000 ton per year facility will be built in phases. The first ~100,000 tons of capacity is expected to come online in 2027.

The release notes that the ~300,000 ton per year facility is Heirloom's contribution to Project Cypress. This is the U.S. Department of Energy (DOE)-supported DAC Hub that is eligible for up to $600 million in government funding.

Heirloom is responsible for financing the projects, with no capital expenditure by Calix or Leilac. It will also pay Leilac for engineering services required to deliver the projects.

This isn't the first agreement between the two parties. Heirloom and Leilac have previously signed an exclusive, global and perpetual licence agreement for the use of the Leilac technology at all future Heirloom DAC facilities. This is subject to performance conditions being met.

The ASX 300 stock's managing director and CEO, Phil Hodgson, was pleased with the news. He said:

Direct Air Capture is a huge potential market in the global effort to address climate change. Heirloom and Leilac's partnership and complimentary technologies deliver an innovative pathway to drive down DAC costs and be at the forefront of this exciting opportunity. It is pleasing to see the significant progress being made.

This sentiment was echoed by Heirloom's CEO, Shashank Samala. He adds:

We couldn't be more excited to be building these new facilities in Northwest Louisiana. These investments not only bring meaningful economic activity and job creation to the region, but also help to cement Louisiana as a leader in this new energy economy and further America's leadership on the global stage.

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

More on Technology Shares

A man holds his hand under his chin as he concentrates on his laptop screen and reads about the ANZ share price
Technology Shares

How could WiseTech Global shares be impacted by its new model?

The company wants to be the operating system for global logistics.

Read more »

A woman on a green background points a finger at graphic images of molecules, a rocket, light bulbs and scientific symbols as she smiles.
Technology Shares

What's the latest for ASX tech stocks?

One main theme continues to elevate itself in the ASX tech sector.

Read more »

Man ponders a receipt as he looks at his laptop.
Technology Shares

Xero shares in focus: here's Macquarie's take on the $3.8 billion Melio acquisition

Are investors making a costly mistake selling Xero shares today?

Read more »

Man on his laptop standing next to data centres.
Broker Notes

Macquarie tips 54% upside for NextDC shares

NextDC shares certainly have momentum.

Read more »

A group of people gathered around a laptop computer with various expressions of interest, concern and surprise on their faces. All are wearing glasses.
Technology Shares

Guess which ASX 300 tech stock is making a 'cutting-edge' US$28m acquisition

What is this tech stock buying? Let's find out.

Read more »

Two people having a meeting using a laptop and tablet to discuss Seven West Media's balance sheet
Technology Shares

Why are Xero shares crashing 9% today?

This cloud accounting platform provider is making big news this week.

Read more »

A bearded man holds both arms up diagonally and points with his index fingers to the sky with a thrilled look on his face over these rising Tassal share price
Technology Shares

Broker says DroneShield share price can hit $2.60 this year

It may not be too late to buy this high-flying stock.

Read more »

A man has a surprised and relieved expression on his face. as he raises his hands up to his face in response to the high fluctuations in the Galileo share price today
Technology Shares

DroneShield shares rocket 20% on huge news

Let's see what this market darling has announced this morning.

Read more »