Cape Times

Renergen is pushing towards full production after maintenanc­e

- EDWARD WEST edward.west@inl.co.za

RENERGEN, the owner of South Africa’s only onshore helium and liquid natural gas (LNG) project and which plans a Nasdaq listing this year, said last week that its helium system integratio­n was nearly complete.

The company said in a quarterly update also that conditions for the Mahlako Gas Energy investment had been satisfied, with the receipt of R550 million for a 5.5% equity stake in Renergen’s subsidiary Tetra4 Proprietar­y, received in February 2024.

The share price ended 3.2% higher at R11.25 last week.

Otherwise, plant maintenanc­e was complete, production had started and previous issues around the mixed refrigeran­t compressor had been resolved. LNG deliveries to customers resumed in early February.

The investment by Airsol had also been completed. Its $7 million (R132m) investment into Renergen convertibl­e debentures had followed a due diligence.

The debentures are convertibl­e into securities on completion of the initial public offering on the Nasdaq, planned for later this year, the update said.

SOL group was founded in Italy in 1927 and operates in 32 countries. It has a big presence in the industrial gases market including helium, across the world.

SOL would also bring significan­t LNG experience, Renergen said.

On the helium system integratio­n, the OEM supplier arrived on site in late February 2024 to complete the final step in commission­ing of the plant, which was progressin­g well.

“We confirm the nitrogen cold box and helium cold box have both been fully integrated and the helium storage tank is cooled to 20 degrees Kelvin. We have recovered our tail gas stream into concentrat­ed helium of 99.95% purity, achieving the design specificat­ions prior to liquefacti­on.

From here, the helium faces a last filtration process to reach 99.999% purity for liquefacti­on. These results have been verified by an independen­t South African National Accreditat­ion System approved laboratory.”

The OEM and Tetra4 were completing pre-checks and assessment­s before collective­ly embarking on the next step of commercial liquefacti­on for customers.

Once liquefacti­on starts, the liquid helium will be used to further cool the storage tank to 4 degrees Kelvin and will signal the start of the final performanc­e test by the OEM.

The plant maintenanc­e was undertaken and completed in February 2024. A contractua­l and insurance related claim was being explored as a result of the root cause determinat­ion of a maintenanc­e failure.

A total of 154 tons of LNG were produced in February 2024 as the plant transition­ed from complete outage into operating plant status.

“Our focus will be to continue to ramp up production and increase efficiency and reliabilit­y in the months to come.”

Airsol, subsidiary of SOL, completed its $7m investment into unsecured convertibl­e debentures in Renergen following the completion of a due diligence.

The debentures are convertibl­e

into securities after the initial public offering on the Nasdaq, planned for later this year.

SOL also brought significan­t liquefied natural gas experience to the table, a statement said.

 ?? ?? RENERGEN is the owner of South Africa’s only onshore helium and liquid natural gas project. | SUPPLIED
RENERGEN is the owner of South Africa’s only onshore helium and liquid natural gas project. | SUPPLIED

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