Renergen Achieves Successful Production of Liquid Helium at Virginia Project

Renergen, a gas producer listed on both the ASX and JSE, has achieved a significant milestone at its Virginia gas project located in South Africa’s Free State province. The company can now liquefy helium in batches from its wells, marking a crucial advancement in its operations. Since April 2, the original equipment manufacturer (OEM) responsible for supplying the necessary equipment has been diligently preparing the helium cold box, bringing it to the required temperature for helium liquefaction. As part of this meticulous process, the helium undergoes purification to achieve an exceptional level of purity, validated at 99.999% by an independent third-party laboratory.

Renergen highlights the stringent quality control measures in place to ensure the highest standards in helium production. On May 6, the company announced that the OEM is currently assessing the operating conditions to commence the performance test phase.

During the performance test, the helium train will transition into continuous operation mode, a critical step towards full-scale production. Renergen prioritizes reliability and consistency in its production processes. To ensure seamless future shutdowns and restarts, the helium train will undergo rigorous testing, starting from ambient conditions. This meticulous approach aims to guarantee repeatability and adherence to documented procedures, with the OEM overseeing every step of the process.

Amidst these developments, Renergen reassures shareholders that the production of liquefied natural gas (LNG) remains uninterrupted. CEO Stefano Marani affirms the company's commitment to maintaining LNG operations throughout the helium liquefaction process. He underscores the recoverability of all liquid helium produced, which will be efficiently utilized to fill tanks for customers.

Looking ahead, Renergen anticipates the completion of necessary checks and balances by the OEM in the coming weeks before proceeding with the performance test. This significant achievement marks a pivotal moment for Renergen as it advances towards commercial helium production, contributing to its long-term growth and operational objectives.

Renergen operates as a producer of helium and liquefied natural gas (LNG), alongside its current activities in compressed natural gas (CNG) production and sales. The company's primary asset is its full ownership of Tetra4, which holds the exclusive onshore petroleum production right issued by the Department of Mineral Resources and Energy (DMRE) in South Africa. This unique position provides Renergen with a significant advantage as the pioneer in distributing domestic natural gas.

Situated approximately 250 km southwest of Johannesburg, the Renergen Virginia Gas Project is located in the Free State region. Covering exploration and production rights across Welkom, Virginia, and Theunissen, the project spans an area of 187,000 hectares. The natural gas reserves within the Virginia Gas Project primarily originate from microbial sources deep within the Witwatersrand Supergroup. This gas is brought to the surface through groundwater circulation along major faults, where it interacts with bacteria deep within the earth's crust.

Notably, the natural gas extracted from the Virginia Gas Project boasts one of the highest helium concentrations globally. It is also characterized by exceptional purity, with methane content averaging over 90% and minimal presence of higher alkanes. This purity significantly simplifies the liquefaction process, enhancing operational efficiency.