Carbonated soft drinks are just one use for CO2. Pic: Getty Images
Premium CO2 product to join Blue Star Helium’s product line-up
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- Blue Star Helium adds premium CO2 product to its portfolio
- Very high quality (99%) CO2 to be sourced from the Serenity project
- Serenity gas development will complement CO2 soured from the Galactica helium project
Special Report: Blue Star Helium has added a premium carbon dioxide product to its industrial gas products portfolio, complementing that expected production of high-grade helium with a CO2 by-product from its Galactica project in Colorado.
The company recently confirmed Galactica as a helium project with up to 1.9% of the rare gas used in semiconductor manufacturing, nuclear energy production, solar panels, optic fibre and the cooling of superconducting magnets in MRI scanning machines present within the State 16 SWSE 3054 development well.
Laboratory analysis of reservoir gas also found carbon dioxide concentrations approaching 70%, which Blue Star Helium (ASX:BNL) said could add to revenues.
In the US, the food and beverage sector accounts for 70% of high purity CO2 consumption while the remaining 30% is used in processes for welding, EV battery production, agriculture and oil field services.
Reliable CO2 supply is also key to municipal waste-water treatment, displacing the high cost and hazards of sulfuric acid in processing.
Progress has also been made on processes that convert CO2 into a carbon neutral jet fuel.
Premium CO2
BNL has now moved to include very high-grade CO2 (99% purity) sourced from the Serenity project as an additional premium product.
Developing Serenity for its CO2 will also provide a foundation for the company’s plan to commercialise the CO2 component of the gas flow from the Galactica/Pegasus project.
As part of this, the company has acquired all interests in the Sammons 315310C well and three additional approved drilling locations from Vecta Oil & Gas and its partners.
This includes the termination of the participation agreement, joint operating agreement and other arrangements relating to the area of mutual interest which were originally entered into in December.
In return, the company has agreed to assign mineral leases located in T28S R54W comprising 1640 net mineral acres to Vecta and its partners.
The transaction lifts Blue Star’s interest in ~18,141 net acres that make up Serenity from 50% to 100%.
“The primary CO2 commercialisation opportunity at the Sammons 315310C well, which is suspended for tie in to production, and across the broader Serenity project is one that excites us,” managing director Trent Spry said.
“While clearly non-core for Vecta and its partners, it is an opportunity that aligns neatly with our planned co-production of premium CO2 at Galactica/Pegasus along with high-grade helium.
“In short, Serenity offers a very high-grade, natural CO2 development opportunity enabling Blue Star to deliver a valuable additional gas product to end-users in critical markets that are undersupplied with reliable, sustainable CO2 streams.
“Expected CO2 purification technology utilisation and targeted marketing strategies also overlap significantly with our high-grade helium projects.
“As such, the advancement of Serenity is also expected to be technically and commercially foundational to monetising the CO2 co-product from our core development focus, the Galactica/Pegasus helium project.”
BNL continues to work with various engineering and commercially interested parties to forecast volumes and costs to maximise development.
This article was developed in collaboration with Blue Star Helium, a Stockhead advertiser at the time of publishing.
This article does not constitute financial product advice. You should consider obtaining independent advice before making any financial decisions.
