Pulsar Helium (AIM:PLSR) has set out how it intends to pay for the commercial-scale helium liquefaction and carbon dioxide processing plant it plans to build in Minnesota, saying its preferred route is project-level debt and public-sector financing rather than fresh equity.
The company describes itself as a primary helium developer, and the plant forms part of its proposed Rare Gas Hub project in the state.
The update follows the binding US$85.5m equipment-supply agreement Pulsar signed earlier in October with Chart Energy & Chemicals, a Baker Hughes subsidiary, covering a helium system with a nameplate liquefaction capacity of 861 litres per hour, around 7.5m litres of liquid helium annually at continuous operation, and a CO2 system rated at 300 tonnes per day.
Pulsar stresses that the US$85.5m equipment price is not the total installed cost of the project, with site and utility due diligence, detailed engineering, an EPC contractor appointment, permitting and commissioning all still to come.
The company is holding discussions in parallel with University Bank, whose parent University Bancorp is a Pulsar shareholder, alongside the Minnesota Department of Employment and Economic Development, USDA Rural Development and Minnesota's Iron Range Resources & Rehabilitation (IRRR).
It says the prospective site sits within IRRR's Taconite Assistance Area and believes it meets the rural-area criteria for USDA's Business & Industry Guaranteed Loan Program, under which USDA could guarantee a loan made by an eligible commercial lender.
None of these conversations has produced a binding commitment, and Pulsar says any assistance remains subject to agency underwriting, program requirements and funding availability.
"Our preferred strategy is to finance a substantial portion of the Rare Gas Hub through debt and public-sector financing, supplemented by existing cash resources, with the objective of limiting reliance on new equity capital," said chief executive Thomas Abraham-James.
Pulsar says preliminary internal modelling points to the Rare Gas Hub operating as a stand-alone midstream business using third-party gas, and it intends to pursue supply and offtake arrangements alongside its financing work as helium and CO2 market conditions evolve ahead of commissioning.
A US$8.55m milestone payment is due to Chart Energy & Chemicals by 31 January 2027 to authorise procurement of long-lead equipment items.