Royal Helium Ltd (TSX-V:RHC, OTCQB:RHCCF) has signed its first offtake agreement for the sale of food and beverage grade CO2 from the company’s Steveville processing facility.
This milestone agreement, with a term of three years, will primarily cater to markets in the Pacific Northwest Region of the United States.
David Young, president of Royal Helium, said the agreement is “a significant expansion of the economics of Royal's initial facility,” highlighting the company’s commitment to growth and innovation.
"This agreement not only propels us forward in our mission to sell a diversified set of value-added gases but also serves as a testament to the multifaceted commercial products generated from our facility, which provide multiple economic cash flow streams for shareholders,” he said in a statement.
The specifics of the agreement, including volume and price, have not been disclosed due to the competitive nature of the negotiations and ongoing discussions for further contracts. However, Royal Helium affirmed its commitment to keeping the market informed with updates on its CO2 business as they unfold.
Young further commented on the strategic significance of the agreement, stating: "This first agreement is a testament to our strategic approach to fully monetizing each facility, and we anticipate further opportunities to meet the growing unmet demand for CO2, and purified commercial products, across various underserved markets in the US."