April 17, 2024



It is no secret that I absolutely love Renergen as a business. My conviction in this business spiked after visiting the plant 2 months ago. Lets dive into who this business is.


Renergen is an emerging producer of helium and liquefied natural gas (LNG), with existing production and sales of compressed natural gas (CNG). Renergens principal asset is its 100% shareholding in Tetra4, which holds the first and only onshore petroleum production right (issued by the The Department of Mineral Resources and Energy (DMRE)) in South Africa, giving it first mover advantage on distribution of domestic natural gas. 


To put it into context, helium is a product of natural gas, which can be treated as a separate asset on its own, once separated from LNG. Helium is not produced in many countries. Further, unlike the standard extraction of natural gas, which includes a complex process, a special case presented itself to Renergen "Our rock has already cracked there's a giant fracture underground. And so when we drill, we're drilling just into that giant fracture where the gas is, and then the gas escapes naturally with no stimulation at all," Renergen CEO Stefano Marani explained.


Typical helium concentrations are between 0.01% and 0.5%. Renergen has an average of 3.4%, with wells up to 12%. This means Renergen has concentrations of 7 times more than anywhere on the planet.



Helium is best known for being lighter than air, but it actually has many unique qualities that make it important for applications in technology.

MRIs                                    20%

Welding                              17%

Laboratories                      10%

Lifting                                  8%

Electronics & Other         45%



  1. The USA currently consumes 41% of all helium.
  2. Private Healthcare is growing at 12% per annum, which means MRIs will need more helium.
  3. We cannot ignore the growth in electronics, semiconductors, LCD and fibre optics mainly from Southeast Asia. As these industries grow, they will need more helium.



  1. The USA currently supplies 55% of the worlds helium, but it is very important to note that their supply is diminishing.
  2. Qatar supplies 32% but their extraction processes pollute the earth 32 times more than Renergen through CO2 emissions.
  3. Qatar and Russia have been unreliable sources of helium supply. The Blockade of Qatar has reduced world supply and impacted price negatively. We also cannot ignore the current war between Russia and Ukraine, resulting in economic sanctions against Russia.



You will often hear investors talk about Phase 1 and Phase 2.


Let's look at the  numbers to compare size!!!


Phase 1 came online April 2022:

Helium Capacity               350kg per day   

LNG Capacity                    2700GJ per day

Cost to Build                      $60m    


Phase 2 comes online 2024/5:

Helium Capacity               5000kg per day 

LNG Capacity                    24000GJ per day

Cost to Build                      $900m  


Phase 2 is on average 12 times bigger than Phase 1. Renergen also needs a ton of money to build Phase 2. They have secured 40% of the funding to date from Ivanhoe Mines (private), The Central Energy Fund (SA government), The Industrial Development Corporation (SA government) and The US International Development Finance Corporation (US government).


Between us, when governments get involved in exploration projects, I take note. They want a piece of the pie of something that can grow exponentially.


Renergen lists Space agencies (China, India, US) as future catalysts for growth in their January 2022 Investor Pack. You can not send rockets to Mars without helium. Fun fact: The Renergen plant was designed by Dr Jia Lin Xiang. Dr Lin developed the helium cryogenic test laboratory for The National Aeronautics and Space Administration (NASA).


Repeat this after me: Renergens historical financial statements are useless. They mean less than nothing to investors. I am going to explain myself.


All the gas from Phase 1 has been sold. Every last drop, but you will see ZERO Revenue in the Income Statement. That is because of the accounting rules. A company is not allowed to recognise revenue UNTIL they have delivered the product to the client. Can you see how deceiving the numbers therefore are.


65% of the gas from Phase 2 has been sold and not a penny of Revenue is allowed in the income statement until 2024/5 when the gas is delivered.


35% of the gas from Phase 2 will be sold to retail investors via the Argonon Helium Token (@ArgononHelium). Holders of the tokens can collect their helium from Renergen from 2024/5. Of course, we are not going to collect our gas, we are going to hold onto those tokens for dear life. Helium is a rare commodity and when it runs out, our kids will coin it (pardon the pun). The tokens are being sold via Bitmart (@BitMartExchange) and PancakeSwap (@PancakeSwap) on the Ethereum blockchain.


Trading starts 5 May 2022 at 4pm. I am dropping this on 5 May 2022 (not a coincidence).



Natural gas is currently imported via pipeline from Mozambique by Sasol. The majority of this gas is being used by Sasol itself in their petrochemical businesses.

  1. There is a massive shortfall of gas of 220000 GJ/day in Johannesburg alone
  2. Sasols Mozambican field is getting depleted
  3. Renergen is estimated to supply 36000 GJ/day by 2025


Renergen has entered into an agreement with Total to build LNG filling stations on major highways

  1. Focused on the N3
  2. Later N1 to Cape Town
  3. Trucks can travel up to 1 000km on a single tank of LNG


There are two options for trucks wanting to run on LNG

  1. Current diesel trucks can install a plug and play solution (1-2 days for installation), then run on diesel and LNG. These trucks will be able to drive 1200km compared to diesel only.
  2. A dedicated NG truck. They will have the same power as diesel trucks and can do 1000km on a single tank of NG



This is not investment advice. I set out to find all the facts you need to make and informed decision. 

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