Blue Star starts helium production at Las Animas County plant

Helium is now flowing from the Pinon Canyon Plant in Las Animas County, where Blue Star Helium said it completed start-up in December 2025 and produced refined helium gas from the first phase of its Galactica Project. The plant began with seven drilled wells, and by March 2026 the company said it had moved into integrated operations, with the Helium Recovery Unit filling an onsite tube trailer for sale under spot-market arrangements.

The start of production marked a shift from construction to cash flow. Blue Star’s Jan. 30 quarterly update said first helium was achieved in December 2025, construction and installation of the processing facility were completed, and work on site then turned to operational refinement and stabilizing throughput for commercial delivery. Blue Star and Helium One Global Ltd., which holds a 50% working interest in the Galactica-Pegasus project, had earlier said first CO2 sales were expected in the first half of 2026, setting up a second revenue stream from merchant carbon dioxide.

The company’s first production came after a six-well development campaign in the first half of 2025. Blue Star and Helium One said the wells tied into initial production carried helium concentrations ranging from 0.4% to 3.3%, with stabilized flow rates between 250 and 500 Mcf/day. Company materials say the project could last more than 12 years, with additional revenue expected from more well tie-ins and infill drilling as the field grows.

That next phase is where the local questions sharpen for Las Animas County. The Las Animas County Board of County Commissioners approved the Pinon Canyon Plant construction permit in April 2025, and the county now sits closest to the project as it moves from seven wells toward a possible 30-plus. More wells would mean a larger industrial footprint in Pinon Canyon, more truck traffic on county roads, more land-use pressure on surrounding property owners and a closer look at whether helium production delivers enough local tax revenue and job growth to justify the disruption.