Leilac has signed a paid engineering contract with an unnamed East Asian cement producer to study retrofitting its carbon capture and hybrid electrification technology at an existing plant. The project aims to capture about 100,000 tonnes of process CO2 per year, with the captured CO2 intended for local industrial use. The study is expected to wrap up in the first half of FY2027. This follows Leilac's earlier partnership with Ambuja Cements in India, marking a shift toward customer-funded, capital-light deployment where Leilac and its parent Calix put no money upfront. For the carbon market crowd, the interesting part is the business model. Leilac is prioritizing projects where the customer pays, not the developer. That reduces risk for the technology provider but raises questions about how quickly this can scale if cement producers have to carry the full cost. The 100,000 tonnes per year capture target is modest for a single plant, but if the hybrid electric heating component works, it could give plants more operational flexibility. Worth watching how the unnamed East Asian producer handles the captured CO2 for local industry use.
