- Mar 26, 2010
An agency of the United States government has agreed to lend it more than R600 million to build a gas plant in the Free State, the JSE-listed Renergen announced on Wednesday, shortly after the signing of the deal.
- Free State gas company Renergen just signed a R600 million loan deal with a US government agency to fund part of its development in Virginia.
- Renergen wants to produce liquefied natural gas – and helium. Possibly quite a lot of helium.
- The United States, with its high-tech resurgent space industries, is particularly vulnerable to a shortage of helium, which is hard to produce and store.
The agency, the Overseas Private Investment Corporation (OPIC), will lend Renergen $40 million over 12 years, at a rate linked to price of US bonds, making for what the local company calls an "efficient source of capital".
The US government just invested R600 million into a gas project in the Free State that promises to reduce the global shortage of helium
Free State based Renergen says the loan from the US Overseas Private Investment Corporation will come in useful to develop its project – and is also an important vote of confidence in its prospects.