Markets Writer Shares of Renergen Limited (JSE:REN) rose the most in almost four months on March 28, 2022, after the helium and natural gas group said the Central Energy Fund (CEF) is looking to pick up a ZAR 1 billion stake, making it the second high-profile investor to express interest in two weeks. The state-owned CEF, whose mandate includes securing SA energy security, aims to pick up a 10% stake in Renergen's subsidiary TETRA 4 (Pty) Limited, which wholly owns the Virginia Gas Project in the Free State. The project is SA's only onshore petroleum development right and has some of the highest helium concentrations, with the JSE- and ASX-listed group looking to raise money for phase 2 of the project.

Renergen's shares leapt as much as 11.3% in intraday trade, closing 9.71% higher at ZAR 43.15. Earlier in March, Renergen, now valued at ZAR 5.45 billion on the JSE, announced that Canadian group Ivanhoe Mines may spend $250 million (ZAR 3.76 billion) to acquire a controlling stake, signing a ZAR 200 million deal for an initial 4.35%. Renergen's phase 1 is on track to begin production in April, with an expected output of 2,700 gigajoules of liquified natural gas (LNG) a day and 350kg of helium, while the group is gearing up for phase 2, a more substantial project that is expected to produce at least 24,000 gigajoules, at an estimated cost of $800 million - $900 million.

"To sign CEF and Ivanhoe Mines in the space of two weeks as major investors and strategic partners highlights the significant growth of the company and the critical role Virginia will play in the future supply of clean energy as well as in-demand helium," Renergen Chief Executive Officer Stefano Marani said. CEF Chief Executive Officer Ishmael Poolo said: "Our participation in the Renergen project is in line with the newly adopted strategy of being a 'strategic investor' in the energy value chain that is geared to support the region's energy needs, leading the energy security and just transition programme for SA." The CEF investment is subject to approvals, including from the Treasury and the department of minerals & energy, as well as internal CEF approval.