Nasdaq- and JSE-listed advanced materials company ASP Isotopes (ASPI) says oil and gas producer Tetra4 has started commissioning Phase 1 of its liquid helium plant, following engineering optimisation at the Virginia gas project, in South Africa.

The start-up of the liquid helium part of the plant is the key remaining step to realise value from two product streams - liquid helium and liquefied natural gas (LNG) - before ASPI ramps up production volumes to nameplate capacity during the second half of this year.

ASPI expects to ship the first commercial helium to customers during September.

Phase 1 is expected to produce about 2 500 GJ/day of LNG and about 70-million cubic feet a day of liquid helium, with commercial production expected to start during the third quarter of this year.

Tetra4 is a subsidiary of ASPI liquid helium and LNG subsidiary Renergen.

Renergen should be capable of generating revenues of over $27-million a year following the completion of Phase 1. ASPI expects to begin recognising these revenues during the second half of its 2026 financial year.

Further, ASPI is in active discussions with potential customers regarding offtake of both LNG and liquid helium from both phases 1 and 2. Currently, it has signed take-or-pay contracts with customers for about 75% of Phase 1 LNG and 15% of Phase 1 liquid helium.

ASPI expects to complete contracting for Phase 1 during the third quarter and start contracting for a significant portion of the expected Phase 2 volumes during the second half of the year.

“This is a major milestone and concludes almost a decade of work by Renergen and its employees. Bringing a new source of liquid helium into production is a rare achievement anywhere in the world,” says ASPI executive chairperson and CEO Paul Mann.

“Helium is essential to industries ranging from semiconductors and healthcare to aerospace and quantum computing, yet global supply remains tight and increasingly strategic. We are proud to soon add a new source to the market at a time when our customers are actively seeking new suppliers of this critical material.

“With Phase 1 now commissioning, our focus turns to completion of commissioning and ramping production to nameplate capacity and advancing Phase 2. We expect to start the construction of Phase 2, at approximately 13 times the size of Phase 1, during the second half of 2026, following completion of Phase 1.”

The construction of Phase 2 is expected to take about 44 months, he says.

“We intend to pursue up to $750-million of senior debt funding from the US International Development Finance Corporation (DFC) and Standard Bank, each of which has previously indicated its willingness to consider supporting Phase 2 with up to $500-million from the US DFC and $250-million from Standard Bank, subject to negotiation and execution of binding definitive agreements.

“ASPI is exploring ways to accelerate the revenues and cash flows from Phase 2,” Mann says.