Calix, Perdaman Advance Hydrogen Supply for Australia’s Zesty Green Iron

Australian industrial technology company Calix Limited has entered into a Heads of Agreement with Western Australia-based multinational Perdaman to develop a hydrogen supply solution for its Zesty Green Iron Demonstration Project. The partnership represents a key step toward advancing the project to a Final Investment Decision (FID).

Under the agreement, Perdaman will serve as Calix’s hydrogen development partner and undertake engineering and design work for a hydrogen supply system capable of supporting the Zesty Project. Calix has granted Perdaman a 12-month exclusivity period for the development of the project’s hydrogen supply solution. During this period, both companies will work with project stakeholders to advance the initiative toward FID.

The Zesty Project is designed to demonstrate the production of hydrogen direct reduced iron (H-DRI) using multiple iron ore sources and producers at a commercially relevant scale. The project will also enable testing of the Zesty H-DRI product across different steelmaking pathways. Hydrogen is a critical component of this process because it acts as a reductant, replacing conventional carbon-intensive reduction methods, while electric heating is used to produce H-DRI from iron ore.

Calix considers the availability of hydrogen at suitable volumes, timelines and costs to be a critical milestone for reaching FID. The engineering study being undertaken by Perdaman will build on preliminary engineering work previously completed for the project and aims to establish sufficient technical and cost certainty for an investment decision.

Perdaman brings substantial experience in hydrogen and industrial development in Western Australia. Its portfolio includes Project Ceres, a multibillion-dollar initiative targeting the development of Australia’s largest domestic ammonia and urea manufacturing facility. Perdaman is also progressing Project Helios, which aims to produce hydrogen as a feedstock for low-carbon fertilizer production and has been shortlisted for funding under the Australian Renewable Energy Agency’s Hydrogen Headstart program.

The agreement complements Calix’s strategic partnership with iron ore producer Rio Tinto and Australian Government support through ARENA. The companies intend to develop a hydrogen supply arrangement for the operational phase of the Zesty Project, although long-term supply terms remain subject to further negotiations.

Calix Managing Director and CEO Phil Hodgson said the partnership strengthens the project’s engineering capabilities and provides a clearer pathway toward FID. Perdaman Managing Director Vikas Rambal said the company’s hydrogen expertise and delivery capabilities could help advance the project and support lower-emission iron production.

Product & Chemical Commodity Price Impact

The move is positive for hydrogen and H-DRI development, as a dedicated supply solution improves the feasibility of low-emission iron production. In the near term, the agreement is unlikely to materially affect global hydrogen prices because the Zesty Project remains at the demonstration stage and long-term supply arrangements are yet to be finalized. However, successful development could increase regional demand for low-carbon hydrogen, potentially supporting prices for hydrogen, ammonia and urea if additional projects follow. Demand for related industrial chemicals and energy inputs may also strengthen gradually. For Chemanalyst-tracked commodities, the impact is therefore expected to remain limited initially but potentially bullish over the longer term.