Renergen's JSE share price rises on liquid helium production update

Liquefied natural gas (LNG) and liquefied helium company Renergen has announced that its liquid helium production train is now fully operational and accumulating liquid helium inventory for sale to its customers whose ISO-container is scheduled to arrive later this month for filling.

Johannesburg- and Australia-listed Renergen has taken over complete operational control of the Phase 1 plant from the original-equipment manufacturer (OEM), which has departed South Africa.

Since July 19, the plant has been producing liquid helium, initially using the output to cool the vacuum-jacketed pipelines and the inline helium storage tank to about 4.5 kelvin, which is a prerequisite to ensure that liquid helium from the helium separator remains liquid once sent to storage.

Additionally, the company's optimisation efforts during the commissioning phase have also yielded results, as evidenced by a significant reduction in timelines for the plant startup and cooldown processes, it said on August 12.

The initial startup and cooldown of the integrated LNG and liquid helium plant took over 65 days, while the most recent cooldown was accomplished in just nine days, Renergen noted.

"A helium specialist from the US has been on site since July 26, with our project, operations and engineering teams providing expert guidance through plant performance optimisation, fine-tuning production operation and control methodologies.

"The specialist's experience with several cryogenic helium plants has helped our team greatly shorten what is typically accepted as an iterative process to optimal performance. We intend to extend his service beyond this phase into ongoing support, and will also encompass liquid helium elements of our Phase 2 project," the company said.

"Despite the challenges in reaching this milestone, we are thrilled to have achieved this significant development and to commence liquid helium sales to our customers. Our team has unequivocally demonstrated its capability to manage and operate this facility effectively in the face of challenges and under extreme pressure," said Renergen CEO Stefano Marani.

"We thank every one of our team who have worked tirelessly and made personal sacrifices to make this objective a reality. It demonstrates our culture and shared values, passion and commitment that we collectively bring to the table each and every day.

"We can now declare South Africa one of a select few countries worldwide to produce liquid helium for the global market," he added.

The company's share price on the JSE rose by nearly 32% in early morning trade on August 12.