Blue Star Helium Poised to Launch First U.S. Helium Production by December 2025

Strategic Entry into U.S. Helium Market

Blue Star Helium Limited (ASX, BNL) has announced a significant milestone in its evolution as a helium and natural carbon dioxide producer in the United States. The company’s Galactica project in Colorado is on track to deliver its first helium production by December 2025, marking Blue Star’s entry into a market grappling with a structural helium supply deficit. This development is underpinned by a 50% joint venture with Helium One Global Ltd, which provides both capital and operational risk sharing.

High-Quality Assets and Proven Development Pathway

Blue Star’s Las Animas acreage boasts high-grade helium and CO2 concentrations with minimal hydrocarbons, strategically located near existing infrastructure and purification facilities. The initial stage involves tying in five production wells to the Pinon Canyon processing plant, with commissioning and first production slated for late 2025. The company has completed a successful seven-well drilling program confirming strong helium concentrations and flow rates, validating the project’s technical and commercial viability.

Addressing Growing Demand Amid Global Supply Constraints

The helium market is characterised by rising demand driven by sectors such as aerospace, quantum computing, semiconductors, and medical imaging, while global supply is constrained by declining production and geopolitical factors limiting access to key sources like Russia. Blue Star’s domestic production aligns with U.S. strategic priorities to secure critical materials for emerging technologies, especially as the U.S. Federal Helium Reserve has been privatised and is near depletion.

Multi-Stage Growth and CO2 Commercialisation

Beyond initial production, Blue Star plans to expand Galactica and develop the Pegasus project, potentially scaling to over 30 wells and multiple processing plants. The company is also advancing the commercialisation of natural CO2, a valuable by-product with applications in food and beverage, agriculture, and emerging carbon-neutral fuels. The Serenity discovery, with ultra-high-grade CO2 concentrations, represents a promising avenue for additional revenue streams.

Experienced Leadership and Financial Position

Blue Star’s management team brings deep expertise in helium, CO2, and oil and gas sectors, with a clear focus on operational execution in U.S. markets. The company maintains a clean capital structure with a market capitalisation of approximately A$14.2 million and cash reserves of A$1.9 million as of October 2025, supported by strategic partnerships and a defined development roadmap.

Risks and Market Outlook

While the company’s plans are ambitious, risks remain around regulatory approvals, operational execution, commodity price fluctuations, and environmental compliance. The helium and CO2 markets are volatile, and production targets depend on successful commissioning and sustained demand. Nonetheless, Blue Star’s positioning in a critical supply niche offers potential upside as global helium shortages persist and U.S. industries seek reliable domestic sources.