Blue Star Helium (ASX: BNL) is poised to commence integrated operations at its Galactica project next week, with the CO2 amine unit now online, marking a significant step towards its 2026 production ramp-up strategy following multiple recent announcements.
The Pinon Canyon Plant is set to begin integrated operations next week, with the CO2 amine unit now operational.
This unit is crucial for removing CO2 from input gas, enabling cleaner helium processing.
CO2 liquefaction and trailer loading components are expected to be added in H1 2026 to enhance processing capacity.
State 9 and State 16 gathering systems are complete, with the Jackson 2 gathering system under construction, including a T-section for a future Jackson 27 connection.
Helium Sales and Ramp-Up Strategy
Spot helium sales arrangements are in place, with ongoing discussions for long-term offtake agreements for both helium and CO2 progressing.
First helium production occurred in December 2025, with the helium recovery unit (HRU) integrated during the same month. The initial tube trailer was delivered in January 2026.
A ramp-up strategy is targeted through 2026, involving further well tie-ins and infill drilling to increase throughput at the Pinon Canyon Plant.
Galactica Project JV and Expansion
The Galactica project is a 50% joint venture with Helium One Global Ltd, aligning ownership and development risk sharing.
Expansion components are planned for H1 2026 to augment processing capacity, further supporting the project's growth.
Previous coverage highlights consistent drilling success at the Galactica project, including successful gas flows at the Jackson 27 and Jackson 29 development wells.
Capital Raising Supports Development
Blue Star Helium recently announced a capital raising of up to A$8.2 million to support its development plans.
Proceeds from the capital raise are allocated to advancing the Galactica project and fulfilling general working capital needs.
The capital raise was structured via a placement and a non-renounceable rights issue, both at A$0.005 per share.
Production Transition and Execution Risks
Blue Star Helium is transitioning its Galactica project towards integrated operations and production, with key processing components now online and a ramp-up strategy for 2026.
Investors will be watching for successful execution of sales contracts and ongoing development to mitigate risks associated with capital needs and commodity price volatility.
