Royal Helium Ltd (TSX-V:RHC, OTCQB:RHCCF) said it has entered into a long-term agreement with a major North American space launch company for the supply of helium, with initial deliveries under the supply agreement to commence in 2023.
The company also announced that with the engineering of its initial processing facilities largely complete, supply and construction contracts are currently being awarded.
Royal Helium will be constructing two initial facilities, the first at Steveville, Alberta and the second at Climax, Saskatchewan. The combined throughput capacity of the plants will be 20 million cubic feet per day gas input.
In a statement, Andrew Davidson, president and CEO, Royal Helium commented: "We would like to thank our new partner for their substantial commitment to Royal Helium and Royal's low carbon helium production programs. Royal aims to be a leading, greener source of helium for the aerospace, high tech, medical, and manufacturing industries worldwide".
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Royal Helium controls over 1,000,000 acres of prospective helium land across southern Saskatchewan and southeastern Alberta. All of the company's lands are in close vicinity to highways, roads, cities and importantly, close to existing oil and gas infrastructure, with a significant portion of its land in close proximity to existing helium-producing locations.
With stable, rising prices and limited, non-renewable sources for helium worldwide, Royal Helium intends to become a leading North American producer of this high-value commodity.
The company's helium reservoirs are carried primarily with nitrogen. Nitrogen is not considered a greenhouse gas (GHG) and therefore has a low GHG footprint when compared to other jurisdictions that rely on large-scale natural gas production for helium extraction.
Helium extracted from wells in Saskatchewan and Alberta can be up to 90% less carbon intensive than helium extraction processes in other jurisdictions.
Contact the author at jon.hopkins@proactiveinvestors.com