Blue Star Helium Secures Kinder Morgan Lease, Targets December Start for Galactica
Blue Star Helium has signed a key lease agreement with Kinder Morgan for CO2 processing equipment, advancing its Galactica Stage 1 project toward first helium and CO2 production by December 2025.
- Lease agreement signed with Kinder Morgan for amine CO2 processing unit
- Galactica Stage 1 project on track for December 2025 production start
- Amine unit designed to produce commercial-grade beverage CO2
- Well tie-ins and gathering system construction underway
- 50% joint venture with Helium One Global Ltd in Colorado
Strategic Equipment Lease Advances Galactica Project
Blue Star Helium Limited (ASX, BNL) has taken a significant step forward in its Galactica Stage 1 development by signing a lease agreement with Kinder Morgan for a critical amine unit used in CO2 processing. This equipment is essential for isolating carbon dioxide from raw gas streams, enabling the production of commercial quantities of beverage-grade CO2 alongside helium.
The amine unit, a key component of the site’s gathering system, is sized to handle up to 4.2 million standard cubic feet per day of raw gas, producing up to 37,000 tons per annum of high-purity CO2. This dual production capability positions Blue Star to meet growing industrial gas demands in the US, particularly in Las Animas County, Colorado, where the project is located.
On Schedule for December 2025 Production
Project development is progressing steadily, with well tie-ins and gathering system construction scheduled for completion in the coming months. Site mobilization and facility construction are underway, supporting the company’s target to commence first helium and CO2 production by December 2025. Blue Star’s Managing Director and CEO, Trent Spry, expressed confidence in meeting this timeline, highlighting the momentum gained from securing key permits and finalizing vital equipment packages.
The Galactica project is a 50% working interest joint venture with Helium One Global Ltd, combining expertise to establish Las Animas County as a major industrial gas supply hub. The company plans to ramp up production progressively through the first half of 2026 as additional wells are tied in.
Market Potential and Expansion Prospects
Blue Star’s engagement with CO2 market participants underscores strong demand for reliable natural CO2 sources. The amine unit’s capacity to produce beverage-grade CO2 not only supports initial operations but also enables significant expansion alongside increasing helium output. This dual focus aligns with broader industrial trends emphasizing low-cost, high-grade helium and sustainable carbon dioxide supply.
With Kinder Morgan’s extensive experience in carbon capture and gas processing, the partnership enhances Blue Star’s operational capabilities and market positioning. The lease agreement includes an initial one-year term with automatic renewals, providing flexibility as the project scales.
Overall, the Galactica Stage 1 project represents a pivotal development in Blue Star Helium’s growth strategy, promising substantial value creation for stakeholders and reinforcing the company’s role in the evolving industrial gases sector.
Bottom Line?
Blue Star Helium’s timely equipment lease and steady project progress set the stage for a potentially transformative entry into the US industrial gas market by year-end.
Questions in the middle?
- Will Blue Star meet its December 2025 production start without delays?
- How will market demand for beverage-grade CO2 evolve alongside helium production?
- What are the long-term expansion plans beyond Stage 1 for the Galactica project?
