Pulsar gas plant would produce 20,000 liters daily

REGIONAL— Pulsar Helium has taken another step forward as it seeks to develop Minnesota’s first commercial-scale rare gas production facility. The company announced late last week that it has accepted an $85.5 million equipment supply proposal that would enable the company to produce just over 20,000 liters per day of liquified helium as well as 300 tons per day of carbon dioxide as part of its Topaz Project, located southeast of Babbitt.
Payment on the equipment will be made in phases as Pulsar raises the necessary capital. Final acquisition is subject to due diligence, utility and site evaluations, permitting and regulatory approvals.
Pulsar controls rights to a gas deposit in central Lake County that is rich in both helium and carbon dioxide and both gases are highly sought after in commercial markets. Helium, in particular, is in short supply and a liter in liquified form sells for anywhere from $15 to $25 on contract, to as high as $50 on the spot market. Carbon dioxide sells for around $600 per metric ton.
Pulsar accepted the proposal by Chart Energy & Chemicals, Inc., a wholly-owned subsidiary of the Baker Hughes Company. The $85.5 million purchase price includes facilities to undertake both helium purification and liquification to enable Pulsar to establish a rare gas hub near its well sites. The company has drilled two primary wells along with five other assessment wells to document the scale and richness of the discovery, which is believed to be one of the richest in North America.
Pulsar’s development of the gas deposit appears poised to have an impact on the local economy, according to state Sen. Grant Hauschild, who represents the region in St. Paul. “If successfully developed, Minnesota has an opportunity to build an entirely new economic ecosystem around helium and rare gas development, processing and the industries that depend on these resources. I appreciate Pulsar’s confidence in northern Minnesota and their willingness to help build that future here.”
Hauschild has helped spearhead new legislation in Minnesota that will regulate the development of these gas resources. The DNR is expected to finalize those regulations in the coming weeks.