Helium, the commodity
we all rely on

Although c. 25% of the mass of the universe is helium it is extremely rare on Earth. Helium is used across a plethora of industries from fibre optics and semiconductors to med-tech and aerospace meaning demand is increasing exponentially and the need to secure supply is becoming more acute.

Currently, the world’s supply of helium is largely dependent on oil and gas exploration, where inert helium gas contained within the carboniferous reservoirs is extracted and sold as a by-product and is typically low grade ranging between 0.05 to 0.3%. Helium cannot be manufactured artificially and with demand increasing, primary helium projects are increasingly recognised as the only way to create a sustainable supply.

The economics are extremely attractive, particularly as liquid helium is a high-value product and can be transported via ISO containers mounted onto trucks with no pipelines needed. With a successful discovery, the potential returns are significant.

Demand growth for helium is extremely positive with an estimated CAGR of 6% from 5.9 Billion cubic feet (Bcf) in 2023 to 8.7 Bcf in 2030. New supply needs to be identified for this critically listed commodity.



Semiconductors

Helium is essential in the manufacturing and assembly of many electronic devices. It serves multiple critical roles in semiconductor fabrication, crucially important chips which can be found in thousands of products including, computers, smartphones, appliances, gaming hardware and household entertainment systems. In 2023, c.1.15 trillion semiconductor units were fabricated. Helium is also employed as a purge gas to establish clean environments, eliminating contaminants and ensuring controlled atmospheres, vital during microchip manufacturing. ( Sce: Semiconductor Industry Association )

Fiber Optic Cables

Helium plays a crucial role in the manufacturing of fibre optic cables. During production, an all-helium environment is used to prevent air bubbles from becoming trapped in the optical fibres, which can cause signal loss and degradation. The use of helium in this process also helps to maintain the integrity and efficiency of the optical fibres. This rapidly growing industry uses c.6% of global helium supply every year, equivalent to approximately 10,000,000 cubic metres ( Sce: Rosendahl Nextrom ).

MRI Scanners

The largest application of helium is in magnetic resonance imaging (MRI) scanners used in the medical industry. Each MRI scanner requires approximately 1,700 litres of liquid helium to cool the copper magnet to superconducting temperatures. With about 50,000 MRI scanners currently in operation worldwide, this number is expected to rise, highlighting the significant and growing demand for helium in this critical healthcare technology. (Sce: GE Healthcare )

Aerospace

In aerospace, liquid helium is used as a pressure agent for cryogenic fuel tanks in space rockets. As a rocket burns fuel (liquid oxygen or hydrogen), its fuel tank is purged with liquid helium to maintain pressure. When you see a rocket on the launch pad with gas emanating from its side, it is likely that this is helium ‘boiling off’ at -268.9ºC. This market is expected to increase significantly in the coming years.

Deep Sea Diving

Technical divers who descend beyond recreational depths (30m – 40m) employ the use of trimix which typically consists of 21% oxygen, 35% Helium, 44% nitrogen. Helium is used as a diluent for oxygen because of its very low solubility in blood reducing the risk of oxygen toxicity and decompression sickness.

Welding and Fabrication

Helium is used in arc welding as a shielding gas because it is non-reactive and allows for a consistent weld at a higher heat transfer, allowing the fabricator to work more quickly and efficiently.

Leak Detection

As helium diffuses through solids three times faster than air, helium gas is used to detect leaks in the hulls of ships, pipelines, air-conditioning systems in cars, and high-pressure equipment like vacuums and cryogenic systems. This is among the more critical uses for helium.

Automotive

Helium is widely used in electric vehicle (EV) and Internal Combustion Engine vehicle manufacture, most notably used for the production of semiconductors, battery testing, laser cutting and chassis welding.

New markets

Hard Drives

Helium hard disk drives (HDD) are set to become the new norm over Air-Filled HDD, as they are more energy efficient, provide higher storage capacity and increased performance compared to current hard drives. This global market is expected to grow at 10% CAGR through 2029 according to Future Market Insights (FMI) to surpass US$80 billion.

New markets

Airships

The new generation of hybrid air vehicles are potentially large new consumers of helium. A greener and more sustainable form of air cargo transport, helium airships have multiple advantages including low energy consumption, the ability to carry heavy cargo long distances and land in remote areas with restricted access: ‘point to point’ delivery. Importantly, as helium is non-combustible these vehicles are significantly safer than hydrogen airships.

New markets

Fusion Energy

Helium is pivotal in the development of fusion power, serving primarily as a coolant and a protective gas. In fusion reactors, helium is used to cool superconducting magnets, which are essential for maintaining the magnetic fields that confine the hot plasma where fusion occurs. Additionally, helium acts as a protective gas to shield the reactor components from the extreme temperatures and radiation within the reactor. Its unique properties make helium indispensable in ensuring the efficiency, safety, and viability of fusion power as a sustainable energy source.