Gold Hydrogen gears up for critical Ramsay Project flow testing of Natural Hydrogen and Helium, while advancing a green methanol feasibility study with Mitsubishi Gas Chemical.
- Ramsay flow testing campaign to start imminently with advanced equipment
- Non-binding MOU signed with Mitsubishi Gas Chemical for green methanol project
- Independent Worley study suggests potential commercial viability of Helium
- Two parallel Natural Hydrogen pilot projects and two Helium pathways in development
- Exploration expenditure of A$2 million; cash reserves support operations for over four quarters
Ramsay Project Flow Testing Nears Commencement
Gold Hydrogen (ASX:GHY) is on the cusp of launching a pivotal flow testing campaign at its Ramsay Project in South Australia, targeting the extraction potential of Natural Hydrogen and Helium. Scheduled to begin within a week, the campaign will test three wells, Ramsay 1, 2, and 3, using Electric Submersible Pumps (ESPs) with capacities ranging from 2,000 to 20,000 barrels per day. This marks a significant scale-up from the previous 180 barrels per day mechanical pump used in 2024, reflecting the company’s commitment to robust data collection on sustained flow rates and reservoir performance.
The campaign is supported by all necessary regulatory approvals, including groundwater reinjection permits, and involves the mobilisation of specialised equipment and crews. The results are expected to be a key catalyst for Gold Hydrogen, underpinning commercial assessment studies and potentially enabling the booking of contingent resources.
Strategic Partnership Targets Green Methanol Production
In a strategic move, Gold Hydrogen has executed a non-binding Memorandum of Understanding (MOU) with Mitsubishi Gas Chemical Company, Inc (MGC), a global leader in methanol technology and a strategic shareholder. The collaboration aims to explore the feasibility of a green methanol production facility on the Yorke Peninsula, using Natural Hydrogen sourced from Ramsay.
The study will progress through a staged approach, starting with a Pre-Feasibility Study (PFS) in the second half of 2026, followed by a Definitive Feasibility Study (DFS) and Front End Engineering Design (FEED), contingent on satisfactory outcomes. The Yorke Peninsula offers several advantages for such a project, including competitive renewable electricity prices, abundant biogenic carbon from cereal crop residues, and access to deep-water port infrastructure for export markets.
Independent Assessment Highlights Helium Commercial Potential
Worley Consulting has completed an independent high-level commercial assessment of Helium production scenarios at Ramsay, modelling projects ranging from two to ten wells for gaseous Helium, and up to twenty wells for full commercial development. The modelling indicates that Ramsay could be commercially viable with sustained Helium flow rates of approximately 29 thousand standard cubic feet per day per well.
Gold Hydrogen plans to accelerate FEED activities for a Helium-focused development, positioning it as the initial commercial platform for longer-term exploitation of both Helium and Natural Hydrogen. The company also intends to deploy a modular Helium purification pilot plant from Quantum Technology, designed for rapid market entry and to generate critical operational data.
Parallel Natural Hydrogen Pilot Projects Underway
Gold Hydrogen is advancing two parallel pilot projects for Natural Hydrogen commercialisation. The first involves deploying a Hydrogen Fuel Cell at Ramsay to convert Natural Hydrogen into electricity, powering a modular Helium purification plant. The second pilot focuses on compressing Natural Hydrogen gas for trucking trials along a major freight corridor, with aspirations to scale into Liquid Natural Hydrogen exports to Japan and green methanol production.
These pilots are designed to complement each other, with the first supporting Helium production and the second targeting broader hydrogen market applications. Both remain contingent on successful flow testing outcomes and subsequent commercial and regulatory milestones.
Financial Position and Operational Risks
During the June quarter, Gold Hydrogen expended approximately A$2 million on exploration activities, primarily at Ramsay, with no production or development expenditures recorded. The company ended the period with cash reserves of about A$11 million, sufficient to fund operations for over four quarters at current expenditure rates.
Gold Hydrogen acknowledges inherent geological and development risks, including uncertainties around resource volumes and recovery rates, as well as social and environmental challenges related to project locations near agricultural lands and national parks. The company emphasises ongoing engagement with landholders, communities, and government stakeholders to mitigate these risks.
Next Steps and Market Position
The immediate focus is the completion of the Ramsay flow testing program, which will inform refinement of commercial scenarios and contingent resource definitions. Subsequent steps include selecting Helium plant capacity and product form, commencing accelerated FEED processes, and continuing engagement with strategic partners and government entities.
With Helium supply tightening globally due to geopolitical disruptions and Australia currently reliant entirely on imports, Gold Hydrogen’s Ramsay Project is uniquely positioned to re-establish domestic supply and capitalise on growing demand in medical, AI, and defence sectors. The company’s multi-pronged approach to both Natural Hydrogen and Helium commercialisation, supported by strategic partnerships and independent assessments, sets the stage for a potentially transformative energy and industrial gas project in South Australia.
Bottom Line?
Gold Hydrogen’s upcoming Ramsay flow tests and green methanol study mark critical steps toward validating commercial potential amid a tightening Helium market and growing hydrogen demand.
Questions in the middle?
- Will the Ramsay flow testing confirm sustained commercial-scale flow rates for both Natural Hydrogen and Helium?
- How will the results influence the timing and scale of potential Helium and green methanol developments?
- What regulatory and community engagement challenges could impact project progression on the Yorke Peninsula?