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- Helium captured in onsite cylinders at Ramsay 1 well in SA
- Australia’s only helium production plant in late 2023
- Important milestone toward goal of re-establishment of helium production in Australia
Gold Hydrogen (ASX:GHY) has taken a major step towards re-introducing critical domestic helium production with further success at its game-changing Ramsay project in South Australia.
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Australia has imported 100% of its helium needs since the BOC Helium plant closed near Darwin in 2023 and since then the importance of the gas has only grown.
More recently a global helium shortage has also been sparked by the closure of two of the world’s biggest plants in Qatar and Russia because of the wars in Iran and Ukraine respectively, has focussed attention on stretched supply lines.
Helium is a key component of hospital MRI machines and increasingly in demand for the manufacture of AI semiconductor chips, which consume a quarter of world helium supplies.
Gold Hydrogen has taken a major milestone towards its aims of establishing local helium production with the industrial gas flowing to surface, before being separated, purified and captured and stored in onsite cylinders from the Ramsay 1 well as part of the company’s 2026 well testing campaign.
MD, Neil McDonald, said this was an major moment for the Gold Hydrogen team and potentially for Australia.
“This is a massive milestone as we investigate the commerciality of our natural helium and hydrogen,” Mr McDonald said.
“The well testing underway now is the most vital in the exploration process, where the volumes of gas and its ease of extraction are tested. The flow test results will be used to progress potential commercial pilot projects for both gases.”
Mr McDonald told shareholders that though it will be some days before interim results are analysed and made public, it is extremely encouraging that within 72 hours of the testing starting, Gold Hydrogen has been able to flow helium to the surface, separate and capture it in cylinders and balloons.
“We can’t get ahead of ourselves, but we continue to believe we can help fill a large gap in Australia’s helium supply chain,’’ Mr McDonald said.
Significantly the testing at Ramsay 1 has a pumping rate of up to 2000 barrels of fluid and gas per day.
When it moves to the Ramsay 3 well, which has been designed differently, Gold Hydrogen is confident it will be able to produce up to 20,000 barrels a day.
Canadian company Quantum Technology Corp, a specialist in modular skid-mounted helium and hydrogen purification plants, provided a portable purification device to help Gold Hydrogen prove its helium concept.
Quantum Technology is the preferred partner for helium production, while Gold Hydrogen recently announced a pre-feasibility study with Japan’s Mitsubishi Gas Chemical company on using natural hydrogen for green methanol production.
Modelling earlier this year by Worley Consulting found that it could take only two wells on the Yorke Peninsula in SA to make helium production viable.
Though producing zero carbon hydrogen remains a top priority, Mr McDonald said the existence of a helium resource offered earlier commercial opportunities.”
GHY is up 6.58% to 40.5¢. Mkt cap $68.57M.
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