Blue Star Helium (ASX:BNL) has made an agreement with US midstream provider IACX Energy to provide helium recovery services at its Voyager project in Colorado.

IACX will deliver and operate a helium recovery plant capable of producing more than 98% pure helium gas, with an expected output in 4Q 2023.

Perth-based Blue Star said it will not be liable for capital costs related to the plant's fabrication and will make monthly payments for its operation.

It also said the plant could be expanded with additional modules or a second plant to increase future helium output, and the Voyager project wells will commence drilling in August 2023.