South Africa-based energy company Renergen has signed a $25m deal in the form of a forward sales agreement which will aim to create a spot market for helium, allowing significant investment potential in the rare gas.
The agreement, signed with Argonon Helium US Inc (Argonon), a US-based helium trading company, will see helium traded in a manner similar to cryptocurrency, via the blockchain, in a quantity of 100,000 units over 19 years.
Each unit represents one thousand standard cubic feet (mcf) of iiquid helium at 99.999% purity.
Following the forward sales of the first 100,000 units of helium, the spot market of helium will dictate the price of any future sales between the companies, less Argonon’s trading margin. This will be available until the expiry of the Virginia Gas Project’s license in September 2042.
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