Renergen and ASP Isotopes to merge, forming global supplier of critical and enriched industrial gases

Renergen Ltd has unveiled plans to merge with United States-based ASP Isotopes Inc (NASDAQ: ASPI), in a move set to create a vertically integrated global producer of electronic and isotopically-enriched gases critical to the energy, semiconductor, and healthcare sectors.

Its shares skyrocketed 50% when the announcement was made.

The merger will see Renergen, operator of South Africa’s first integrated helium and liquefied natural gas (LNG) production facility, become a subsidiary of ASP Isotopes. Its flagship Virginia Gas Project in the Free State is considered a key strategic asset, with helium concentrations exceeding global averages by more than tenfold.

Integrated supply chain and reduced production costs

ASP Isotopes chairman Paul Mann said the transaction would establish a vertically and horizontally integrated business spanning key markets and geographies, with significant customer overlap.

“Both isotopes and helium are viewed by many governments as critically and strategically important materials,” Mann said. “The combination of our two companies will create an entity with huge strategic value which will become a vital part of a fragile supply chain enabling so many industries.”

He added that ASP Isotopes could cut enrichment costs by as much as 94% by leveraging energy from Renergen’s large-scale LNG infrastructure, with production energy currently representing the bulk of ASP's cost base.

Access to US capital and sector expertise

Renergen chief executive officer Stefano Marani said the partnership followed a challenging period marked by high commissioning costs and delayed helium sales from the Virginia project.

“Access to a US investor base with a deep understanding of critical minerals and oil and gas has been the final ingredient required to unlock the Virginia project and the longer-term expansion of this unique natural resource,” Marani said.

“In joining our two companies not only do we get this, but even more exciting is the expansion of the business horizontally across our key helium customer bases of nuclear, healthcare, semiconductors and rocketry.”

Strategic timing amid global supply risks

The deal comes as Western economies seek to bolster supply chain resilience following recent Chinese export controls on critical materials like gallium, germanium and graphite.

“Western and other governments have recognised the key importance of securing access to critical materials and other strategic resources that are increasingly necessary to maintain economic and military strength,” Mann said. “This business combination directly addresses these concerns.”

Proven capabilities and commercial momentum

ASP Isotopes has completed three enrichment facilities in South Africa in as many years and is already commercialising isotopes such as silicon-28, carbon-14 and ytterbium-176 through long-term supply contracts.

The merger provides immediate operational and sales synergies across shared end-markets in the medical, nuclear and semiconductor sectors. Analysts forecast spending on artificial intelligence infrastructure—heavily reliant on these materials—could exceed US$300 billion globally in 2025.

The combined company will be headquartered in Austin, Texas, with Renergen maintaining operational leadership at the project level and expanding its role across ASP’s electronics and space division.

Completion of the merger is targeted for the third quarter of 2025, pending regulatory and shareholder approvals.