Advanced materials company ASP Isotopes has signed an agreement to potentially acquire South African helium and liquefied natural gas producer Renergen.
The deal comes as ASP Isotopes transitions from development to commercial production, with three of its enrichment plants now producing Carbon-14, Silicon-28, and Ytterbium-176.
Isotopes are believed to have one of the most fragile supply chains globally, and the US Department of Energy, along with most Western governments, considers them critical materials.
The planned deal aims to create a more integrated supply chain, which could significantly reduce isotope enrichment costs compared to current levels.
Paul Mann, Chairman and CEO of ASP Isotopes, said the combination of the two companies would create a company with strategic value as part of a fragile supply chain.
“This is an [important] step for ASP Isotopes,” he said. “With the imminent spin-out of QLE, I have been considering the expansion of the ASP Isotopes business, and this opportunity is the perfect fit for us.”
Renergen’s key asset, the Virginia Gas Project, has what it says are helium concentrations over 10 times the global average. It has secured $40m from the US Development Finance Corporation and is set to receive up to $750m more in funding to expand production in South Africa.
On a LinkedIn post, helium consultant Phil Kornbluth said, “This [deal] provides a lifeline for Renergen, which has been incurring losses as it has been trying to ramp up phase one of its Virginia LNG-and-helium project.”
