South Africa will become one of the world’s eight liquid helium producers when Renergen commissions the first phase of its Virginia Gas Project in the Free State at the end of July.
Renergen CEO Stefano Marani announced on CNBC Africa recently that the first phase of the plant was set to be opened later this month. Construction of the development started in 2019.
During phase one the plant will employ about 75 people, while Phase 2 will boost the staff complement to 150 or 160.
According to MyBroadband, Renergen claims that the helium deposits at the 187 000-hectare facility, which will be operated by its subsidiary Tetra 4, could be the richest concentration of the gas in the world.
Marani and COO Nick Mitchell bought the gas rights in the area for $1 in 2012, worth about R8 at the time.
The firm initially planned to extract liquefied natural gas (LNG), but its survey revealed that there was massive helium potential, estimated to be worth more than $100 billion (R1.71 trillion).
Tetra 4 will extract both products, which are expected to be in high demand globally for the energy and transport sector, while helium is also in demand for semiconductor and rocket fuel manufacturing. It is also used in medical devices and for the production of fibre-optic cables and televisions.
The first phase of the Virginia Gas Project was financed by the United States government and local investments from Mazi and Sanlam. The commissioning will include a proof-of-concept project to show that the gases are available and that they can be separated from each other.
Renergen plans to start commercial operations in 2025.
Ceramic Industries and Consol Glass have already signed up to buy 60% of the LNG produced, while the balance will be available for sale for use in trucks for the logistics industry.
LNG conversion kits can lower a truck’s long-term running costs by substituting fossil fuel consumption by between 40% and 60%. LNG can also be used as a low carbon emission alternative fuel for generators.
