Blue Star Helium has achieved its first helium production at the Galactica Project, marking a key milestone as it optimizes plant operations and prepares for commercial ramp-up.
- First helium production achieved December 2025
- Plant optimization underway to stabilize throughput
- Early revenue from short-term contracts initiated
- Plans for long-term offtake agreements in progress
- Additional well tie-ins and infill drilling planned for 2026
Milestone Achieved at Galactica Project
Blue Star Helium Limited (ASX – BNL) has announced a significant operational breakthrough with the successful production of refined helium gas from its Galactica Project at Pinon Canyon in December 2025. This achievement marks the transition from development to commercial operations for the company’s newest helium processing facility in the United States.
Optimizing for Commercial Delivery
Following first production, Blue Star’s technical teams have returned to Pinon Canyon to focus on plant optimization. The goal is to stabilize throughput and ensure the facility meets delivery requirements for initial offtakes. This phase is critical as the company scales production and fine-tunes operations to handle commercial volumes efficiently.
Notably, the first helium tube trailer has arrived on site, ready for filling and early revenue generation. Each trailer holds approximately 170,000 standard cubic feet of helium, with a gross value estimated between US$59,500 and US$102,000, underscoring the commercial potential of the project.
Commercial Strategy and Market Positioning
Blue Star is pursuing a dual approach to revenue generation. In the short term, the company is targeting contracts that provide immediate cash flow, while simultaneously developing longer-term partnerships to secure stable, continuous supply agreements. This strategy aims to position Blue Star as an attractive supplier within the US domestic helium and CO2 markets, offering buyers diversification and reliability.
Engagement with a broad spectrum of potential customers; from small-scale transport buyers to large bulk gas end users; reflects the company’s intent to build a diverse and resilient customer base. The ramp-up of the Pinon Canyon plant’s capacity will be supported by additional well tie-ins and infill drilling, planned to increase processing throughput and drive substantial revenue growth through 2026.
Joint Venture and Future Outlook
The Galactica Project is operated as a joint venture with Helium One Global Ltd, which holds a 50% working interest. This partnership combines expertise and resources to advance the project’s development and commercialisation.
Managing Director and CEO Trent Spry highlighted the steady ramp-up of gas processing and the strategic focus on balancing short-term revenue with long-term commercial relationships. As Blue Star moves forward, the market will be watching closely for updates on production volumes, contract finalisations, and the impact of ongoing drilling activities.
Bottom Line?
Blue Star’s first helium production sets the stage for a critical growth phase, but the pace and scale of commercial contracts will be key to watch.
Questions in the middle?
- What are the terms and durations of the short-term contracts secured so far?
- How quickly can additional well tie-ins and infill drilling increase production capacity?
- When will Blue Star announce long-term offtake agreements and their impact on revenue visibility?