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Royal Helium Enters Three-Year Agreement for CO2 Supply in the US Market
Royal Helium Enters Three-Year Agreement for CO2 Supply in the US Market

Royal Helium Enters Three-Year Agreement for CO2 Supply in the US Market

  • 27-Mar-2024 4:33 PM
  • Journalist: Rene Swann

Royal Helium Ltd. (TSX-V: RHC) (TSX-V: RHC.WT.A) (OTCQB: RHCCF), known as Royal, is delighted to announce its inaugural offtake agreement for the sale of food and beverage grade CO2 from its Steveville Processing and Purification Facility. This landmark agreement spans a three-year duration and is primarily oriented towards serving markets in the Pacific Northwest Region of the United States.

David Young, President of Royal Helium, lauds this achievement as a significant milestone in expanding the economic viability of Royal's initial facility, showcasing the company's steadfast commitment to growth and innovation. He emphasizes that this agreement not only advances their mission to market a diversified range of value-added gases but also underscores the multifaceted commercial products generated by their facility, which promise multiple economic cash flow streams for shareholders. Young further emphasizes that this initial agreement stands as a testament to Royal's strategic approach to fully capitalize on each facility's potential, with anticipations of tapping into further opportunities to cater to the burgeoning demand for CO2 and purified commercial products across various underserved markets in the US.

Due to the competitive landscape of these negotiations and ongoing discussions for additional contracts, specific details regarding volume and pricing remain undisclosed at present. Nonetheless, Royal Helium pledges to provide ongoing updates to the market regarding the progress of its CO2 business as events transpire.

Additionally, Royal Helium’s Steveville Production plant is designed to process 15,000,000 cubic feet of raw gas per day, resulting in an annual production of 22,000 million cubic feet per year of 99.999% pure helium. Furthermore, the plant will yield 20 million cubic feet per year of food-grade CO2 and eight barrels per day of condensate. In February 2024, Royal Helium unveiled its ambitious 2024 development plans, with the company poised to have multiple operational facilities in the near term. The company's strategic focus centers on finalizing and evaluating the performance of current wells situated in the Val Marie, Ogema, and Steveville properties, in addition to launching new drilling ventures for a 40-mile project in Alberta, Canada.

Royal Helium is a company focused on exploration, production, and infrastructure, primarily committed to advancing the extraction and development of helium and associated gases. Positioned strategically with an expansive portfolio covering over 1,000,000 acres of promising helium permits and leases in southern Saskatchewan and southeastern Alberta, the company is poised to become a top producer of this increasingly valuable commodity in North America, amidst the current global undersupply situation. Notably, Royal's helium reservoirs are predominantly accompanied by nitrogen, a gas that isn't classified as a greenhouse gas (GHG), thereby resulting in a significantly lower GHG footprint compared to plants in regions reliant on extensive natural gas production for helium extraction. This environmentally favorable characteristic underscores the potential for helium extraction processes in Saskatchewan and Alberta to be up to 90% less carbon intensive than those observed in other jurisdictions.

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