South Australia project advances as helium–hydrogen potential strengthens

A gas development in South Australia is moving closer to pilot testing, with early modelling indicating that even a small number of wells could support commercially viable production of helium and hydrogen, strengthening efforts to establish domestic supply of critical gases.

The project, located on the Yorke Peninsula, has been assessed by Worley Consulting, which found that as few as two wells could be sufficient to achieve commercial viability under current assumptions. A larger development of around ten wells could further improve project economics and significantly reduce payback periods.

Global helium markets have tightened in recent years due to geopolitical instability and constrained supply, contributing to rising prices and renewed interest in developing new sources outside traditional production regions. In this context, the modelling suggests that each well could deliver sustained flow rates of around 29,000 cubic feet per day, with a scaled-up operation potentially producing roughly half of the output of Australia’s last domestic helium facility, which closed in Darwin in 2023.

Alongside helium, the project is also being evaluated for its hydrogen potential, adding further strategic value in the context of the global energy transition. Hydrogen pathways under consideration include green methanol production, power generation and fuel cell applications, with developers highlighting that upcoming flow testing, due to begin in June, will be decisive in confirming both the scale and consistency of gas production.

Work is already underway with Canadian technology specialists to design a potential pilot-scale processing facility, using modular purification systems supplied by Quantum Technology Corp to refine raw gas into high-purity helium, with additional capability to separate hydrogen depending on reservoir composition.

With no current domestic helium production, the project is being positioned as a potential step toward improving supply security for industrial, medical and technology users, while also supporting broader decarbonisation and low-carbon fuel development objectives. Developers say helium remains the immediate commercial focus, but hydrogen could become an increasingly important revenue stream if flow testing confirms viable volumes, aligning the project with wider energy transition goals.