October 13, 2023 Via Gasworld
Royal Helium has announced the successful start-up of its Steveville helium purification facility in Alberta.
The plant has been engineered to process 15,000 mcf/day of raw gas fed by two of Royal Helium’s helium wells. With this, the plant has an output capacity of around 22,000 mcf of 99.9999% helium per year.
Helium produced by the plant will meet the three-year purchase agreement that Royal Helium has made with two offtake partner agreements in the North American aerospace and space launch industries.
It is believed the the helium supplied under the contacts will have an average price of $538 per mcf. The facility at Steveville is said to have an ultra-low operating cost due to it being self-powered by fuel gas co-produced from the two helium wells.
Andrew Davidson, President and CEO of Royal Helium described the plant start-up as a “pivotal moment”.
He added, “Following a successful start-up, Royal Helium will begin ramping up towards full commercial production, making us the first publicly listed helium producer operating in Canada.”
The Steveville plant will also materially benefit from carbon credits, generated under the Technology Innovation and Emissions Reduction System in Alberta. As these carbon credits are monetised, it will have the ability to provide Royal shareholders with a material additional cash flow stream.
News of the start-up comes hot on the heels of the Helium Developer Association of Canada being formed, of which Royal Helium is a member. The association hopes to address the growing demand for a long-term, secure helium supply chain.
Other member companies of the Helium Developers Association of Canada include Avanti Helium, First Helium, Global Helium, and Thor Resources.