Shares in Gold Hydrogen Ltd (ASX: GHY) jumped during the week after the company said it believed it had a "world-leading" hydrogen and helium project in South Australia.
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Encouraging results
The company said in a statement to the ASX that drilling and well testing to date had confirmed "exceptional" gas purities at the Ramsay project, with natural hydrogen at up to 97% and helium at up to 36.9%.
The company also said Worley Consulting had completed a high-level commercial assessment of three helium production scenarios.
The company said:
Modelling undertaken by Worley indicates that, based on the inputs provided by the Company, Ramsay may have the potential to be commercially viable with as few as two wells, assuming sustained helium flow rates of ~29 thousand standard cubic feet (Mscf) per day per well. Scaling to ten wells is indicated by Worley to improve the net present value, internal rate of return and payback for a gaseous product.
The company said that while it was still looking to advance its medium to long-term hydrogen opportunities, it had identified the potential for accelerated helium development at Ramsay.
Gold Hydrogen said it would continue working with Worley Ltd (ASX: WOR) to refine the models in parallel with the next flow-testing campaign at Ramsay, which is scheduled for June.
The company said Australia currently imports all of its helium following the closure of the Darwin LNG Helium plant in late 2023.
The company added:
Helium is a high-value, non-manufacturable commodity, with structurally rising demand driven by advanced industrial and technological applications.
Helium in demand
Gold Hydrogen Chair Alexander Downer said:
Helium currently sits on Australia's Strategic Materials List, but that is a holding pattern, and the events of recent weeks have laid bare just how exposed Australia is. We import 100% of a gas that is essential to chips, MRI, defence and AI infrastructure, and the global supply chain recently lost roughly a third of its production overnight. It is time to move helium from the Strategic Materials List back onto Australia's Critical Minerals List, where it belongs. Independent commentary, including a recent piece by the Australian Strategic Policy Institute, has put the issue plainly: no Helium, no chips. Gold Hydrogen has a unique opportunity, and a responsibility, to help Australia rebuild a sovereign helium capability and to be part of the solution for our allies and trading partners.
Gold Hydrogen is valued at $72.2 million. The company's shares are changing hands at 37.5 cents at the time of writing, up 15.4% from a week earlier, after trading as high as 43 cents the week after the announcement.
