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Renergen’s Virginia Gas Project has entered the testing phase for its liquid helium plant, with first commercial deliveries targeted for September.Tetra4, Renergen’s 94.5%-owned subsidiary, has begun work to start up the phase 1 helium plant in the Free State after engineering optimisation, according to a statement issued by Renergen’s parent company, ASP Isotopes, on Thursday.Tetra4 has been producing LNG at the Virginia project since September 2022, while commercial helium production is targeted for September.Phase 1 is expected to produce about 2,500GJ a day of LNG and 70,000 cubic feet a day of liquid helium.ASP Isotopes estimates that phase 1 could generate more than $27m (R430m) in annualised revenue, based on assumed LNG prices of $15-$18 a gigajoule and a helium price of $600/1,000 cubic feet. The estimate is based on assumptions and has not been audited, the company said.The project still has to secure additional customers for its helium output. Take-or-pay agreements currently cover about 75% of phase 1 LNG production, while only 15% of planned helium output is contracted.The company is also preparing for a much larger phase 2, which is expected to be about 13 times the size of phase 1. Construction is planned to begin in the second half of 2026 and is expected to take about 44 months.Funding for the expansion has not yet been finalised. ASP Isotopes said it plans to pursue up to $750m in senior debt, comprising up to $500m from the US International Development Finance Corporation and $250m from Standard Bank.Both institutions have previously indicated that they are willing to consider financing the project, but any funding remains subject to negotiations and binding agreements.ASP Isotopes said it is looking at ways to bring forward revenue and cash flow from phase 2 but provided no details on how this would be achieved. It is expected to outline its plans at a capital markets day in London on September 8.Before the much larger expansion can proceed, Renergen still needs to bring phase 1 into commercial production, secure additional helium offtake agreements and finalise funding for phase 2.Renergen is a South African natural gas and helium company whose main asset is the Virginia Gas Project in the Free State, which is being developed to produce LNG and liquid helium. ASP Isotopes acquired Renergen in January 2026, making it a wholly owned subsidiary. Renergen was subsequently delisted from the JSE, while ASP Isotopes retained a secondary JSE listing alongside its primary Nasdaq listing.Business Day
