Blue Star Helium has achieved its first commercial helium production at the Galactica Project in Colorado, marking a pivotal step as it ramps up operations and secures funding for expansion in 2026.
- First commercial helium production at Galactica in December 2025
- Pinon Canyon processing plant construction completed and operational
- Phased commercial strategy with short-term and long-term offtake agreements
- Capital raising of A$3.78 million supports ramp-up activities
- Plans underway to monetize CO2 resources and expand helium production
Milestone Achieved, First Helium Production
Blue Star Helium Limited (ASX, BNL) has crossed a significant operational threshold with the successful commissioning of its Pinon Canyon processing plant and the achievement of first commercial helium production at the Galactica Project in Colorado during December 2025. This milestone validates years of subsurface evaluation and development work, positioning Blue Star as a growing player in the North American helium market.
The Pinon Canyon facility, constructed and installed within the quarter, is now mechanically complete and tied into a network of producing wells. The initial production phase focused on stabilising throughput and refining operational processes to enable commercial delivery of helium gas.
Strategic Ramp-Up and Commercialisation
Blue Star is executing a two-phase commercial strategy. Early revenue generation will come from short-term offtake contracts, while longer-term partnership agreements are being pursued to secure sustained revenue streams. The company has already taken delivery of its first helium trailer and tube for on-site filling, signalling readiness for near-term sales and transport.
Looking ahead, Blue Star plans to ramp up production through additional drilling and infill well tie-ins across the Galactica-Pegasus acreage. The company targets full plant capacity in 2026, supported by an independent engineering study confirming strong helium flow potential from multiple wells in the Lyons Formation.
Capital Raising and Financial Position
To underpin its operational ramp-up, Blue Star completed capital raisings totaling approximately A$3.78 million through a placement and a non-renounceable rights issue. These funds are earmarked for advancing drilling programs, plant expansion, and commercial activities. The company ended the quarter with a healthy cash balance of A$2.165 million and no debt, providing a solid financial foundation for 2026.
CO2 Monetisation and Broader Expansion Plans
Beyond helium, Blue Star is progressing plans to commercialise significant carbon dioxide (CO2) resources co-produced at Galactica. The company aims to integrate CO2 purification and liquefaction capabilities at the Pinon Canyon plant, targeting first CO2 deliveries in the first half of 2026. Additionally, Blue Star is exploring expansion opportunities across its broader Las Animas acreage and adjacent prospects, including the Serenity prospect known for super-rich CO2 concentrations.
This diversified approach not only enhances revenue potential but also aligns with evolving market demands for strategic gases.
Outlook and Market Positioning
Blue Star’s entry into commercial helium production comes at a time when helium supply diversification is increasingly valued by industrial and technological end-users. The company’s phased ramp-up, supported by robust engineering data and strategic capital management, positions it well to capture emerging market opportunities in the US and beyond.
As operations scale, the market will be watching closely for production volumes, revenue recognition from offtake agreements, and progress on CO2 monetisation initiatives.
Bottom Line?
With first helium flowing and strategic growth plans underway, Blue Star Helium is set to transform from explorer to producer in 2026.
Questions in the middle?
- How quickly can Blue Star ramp production to full plant capacity?
- What are the terms and potential scale of the long-term offtake agreements?
- How will CO2 monetisation impact overall project economics and timelines?