Royal Helium Ltd. [TSXV-RHC] announced that the engineering and scoping study for a large-scale industrial gas polygeneration facility, located in Saskatchewan, has been initiated by Royal and will be conducted by the Saskatchewan Research Council (SRC). The study is Royal’s first step in determining the economic potential of a large-scale facility for the separation and monetization of the gas streams associated with helium production wells in Saskatchewan.
Andrew Davidson, President and CEO of Royal stated: “In Saskatchewan, helium is coproduced with large flows of other inert gases for which there is a large and established North American and global market. Royal is now reviewing whether there is an opportunity to monetize the complete gas stream. Currently, our economic analysis does not include credits for other potentially commercial gases produced and processed. While the economics of helium production are significant on their own, the impact of the commercialization of other gases could substantially add to net cash flow.”
The results of this initial engineering and economic study are anticipated to be received in December of 2020.
The SRC is Canada’s second largest research and technology organization. With more than 290 employees, $91 million in annual revenue and nearly 75 years of experience, SRC provides services and products to its 1,500 clients in 27 countries around the world.
Royal is focused on the exploration and development of primary helium production in southern Saskatchewan. With over 400,000 hectares of prospective helium lands held under permits, leases and applications, Royal is one of the largest helium leaseholders in North America. Located next to highways, roads, cities and, importantly, close to existing oil and gas infrastructure, Royals projects were methodically evaluated for helium potential for over two years, and have been vetted by helium experts, professional geologists and engineers.