Gold Hydrogen (ASX:GHY) has achieved a significant milestone in its effort to re-establish domestic helium production in Australia, with helium successfully flowing to the surface at its Ramsay project on South Australia's Yorke Peninsula.

The accomplishment comes as part of the company's 2026 well testing campaign at the Ramsay 1 well, where helium was brought to the surface, separated, purified, captured, and stored in onsite cylinders.

Australia has relied entirely on imported helium since the BOC Helium plant near Darwin ceased operations in 2023. The strategic importance of securing a domestic supply has only intensified since then, as a global helium shortage — triggered by the closure of two of the world's largest helium plants in Qatar and Russia amid conflicts involving Iran and Ukraine — has placed further strain on already stretched supply chains. The 2023 privatisation of the United States Federal Helium Reserve, held at Cliffside in Texas and long considered a global supply buffer, removed another layer of supply security that had existed for decades.

Helium is a critical component in hospital MRI machines and is seeing rapidly growing demand from the manufacture of AI semiconductor chips, a sector that alone consumes approximately one quarter of global helium supplies. Unlike most industrial gases, helium cannot be manufactured synthetically and, once released into the atmosphere, escapes Earth's gravity, making the discovery of new geological sources particularly significant.

Gold Hydrogen's Ramsay project sits within a broader emerging field of exploration for naturally occurring — sometimes called "white" or "geologic" — hydrogen and helium, a concept that has gained scientific and commercial attention over recent years after natural hydrogen seepages were documented in locations including Mali and France. South Australia has positioned itself as an early mover in regulating and encouraging this type of exploration.

Gold Hydrogen Managing Director Neil McDonald described the development as a pivotal moment for the company and potentially for Australia.

"This is a massive milestone as we investigate the commerciality of our natural helium and hydrogen," McDonald said. "The well testing underway now is the most vital in the exploration process, where the volumes of gas and its ease of extraction are tested. The flow test results will be used to progress potential commercial pilot projects for both gases."

McDonald told shareholders that while it will be several days before interim results are analysed and publicly released, it is highly encouraging that within 72 hours of testing commencement, Gold Hydrogen was able to flow helium to the surface and capture it in cylinders and balloons.

"We can't get ahead of ourselves, but we continue to believe we can help fill a large gap in Australia's helium supply chain," McDonald added.

The testing at Ramsay 1 is being conducted at a pumping rate of up to 2,000 barrels of fluid and gas per day. When operations move to the Ramsay 3 well — which has been designed using a different approach — Gold Hydrogen expects to achieve production rates of up to 20,000 barrels per day.

Canadian firm Quantum Technology Corp, a specialist in modular skid-mounted helium and hydrogen purification plants, supplied a portable purification device that enabled Gold Hydrogen to validate its helium extraction concept. Quantum Technology serves as Gold Hydrogen's preferred partner for helium production.

Separately, Gold Hydrogen recently announced a pre-feasibility study with Japan's Mitsubishi Gas Chemical Company examining the use of natural hydrogen for green methanol production.

Modelling completed earlier this year by Worley Consulting indicated that as few as two wells on the Yorke Peninsula in South Australia could be sufficient to make helium production commercially viable.

While the production of zero-carbon hydrogen remains a top priority for the company, McDonald noted that the existence of a helium resource presents earlier commercial opportunities.

Following the announcement, GHY shares rose 6.58% to 40.5 cents, bringing the company's market capitalisation to $68.57 million.