Australia-based Blue Star Helium has secured a master services agreement (MSA) with US midstream provider IACX Energy to enhance helium recovery at the high-grade Voyager project in Las Animas County, Colorado.

The agreement, which will boost Voyager’s production capacity, involves the operation of a pressure swing adsorption (PSA) helium recovery plant, offering a nameplate raw gas throughput of two million cubic feet per day (MMcf/day) to produce helium product gas with over 98% purity.

IACX Energy, a seasoned helium production, processing, and marketing company, will supply and operate the helium plant in return for a monthly fee. In this arrangement, Blue Star Helium avoids any capital costs linked to the plant’s fabrication.

“We are pleased to have partnered with such a well-credentialled and proven midstream helium operator,” said Trent Spry, Blue Star’s Managing Director and CEO, highlighting the strategic benefits of the collaboration. He further elaborated on the future expansion possibilities, stating, “The plant to be supplied at Voyager can be readily expanded to increase helium output in the future.”

The helium recovery plant is set for commissioning with its first output expected during Q4 CY2023. Based on an average of 8% helium in the raw gas, the targeted helium production is estimated to be approximately 38 MMcf net to Blue Star Helium in its first full capacity year.

Apart from providing a secure site and raw gas access to the facility, Blue Star Helium is also planning to commence Voyager production well drilling and testing in August 2023. The forecasted total field and plant operating cost is highly attractive, expected to be approximately US$100-120 per thousand cubic feet (Mcf) of helium product gas at full capacity.

The anticipated high-purity helium production is set to bolster Blue Star Helium’s portfolio, setting the stage for significant advancements in the helium industry.

  Blue Star Helium, Colorado, IACX Energy, Jeremy Jordan, Las Animas County, Trent Spry, USA, Voyager helium project