The present invention is directed to a process for the purification and liquefaction of helium from a feed stream consisting essentially of nitrogen and helium with some minor impurities, wherein the helium is purified in a two step process: the first purification step comprising refrigerating the feed stream to condense nitrogen and any impurities from the feed stream, feeding the cooled feed stream to a separator, and removing from the bottom of the separator the condensed nitrogen and impurities in the feed stream and from the top of the separator a gaseous, high-helium-content stream; the second purification step comprising warming the gaseous, high-helium-content stream from the first purification step, feeding said stream to a pressure swing adsorber, and removing from the pressure swing adsorber an essentially pure helium stream, which is liquefied by feeding said essentially pure helium stream to a liquefier; wherein refrigeration is provided for the warm end of the liquefier and the two step purification; the improvement comprising providing said refrigeration by compressing a side stream of the essentially pure helium in a compressor and expanding said compressed stream in an expansion engine thereby producing a cold helium gas stream; splitting said cold helium stream into two substreams and circulating said cold helium gas stream to the warm end of the liquefier and to the two step purification to provide refrigeration duty.