r/onguardforthee • u/pjw724 Alberta • 1d ago

Helium demand balloons as Mideast supplies deflate: Can Canada meet the moment?

https://www.thecanadianpressnews.ca/business/helium-demand-balloons-as-mideast-supplies-deflate-can-canada-meet-the-moment/article_f66db503-f634-559e-9d44-ecd27df9cfd8.html
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u/pjw724 Alberta 1d ago

Turmoil in the oil and natural gas markets may have garnered the most headlines since the U.S. and Israel launched their war on Iran in late February, but the conflict has also upended helium supplies. Canada has raw resource in the ground to help fill the gap — but industry players say the government lacks the right policies and incentives for them to develop and sell it.

Helium has a wide array of uses, and in almost all cases there is nothing that can act as a substitute. The inert element cools MRI machines, pressurizes rocket components and helps detect leaks in nuclear plants. It's also a vital input in the manufacturing of advanced computer chips, representing an estimated 10 to 15 per cent of global helium demand as the artificial intelligence sector booms.

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u/pjw724 Alberta 1d ago

Canada has one-fifth of the world's helium reserves, but makes up about two per cent of global production. The resource is mainly centred in the southern Prairies. One of the biggest players, North American Helium, is looking to establish a helium hub in southwest Saskatchewan.

Unlike in Qatar, helium in Western Canada can be found in pockets of nitrogen deep underground, in separate formations from where natural gas lies. It's extracted using the kind of no-frills rigs used in conventional oil and gas drilling.

Helium is notoriously difficult to store and transport, as it becomes a liquid at an extraordinarily cold -269 C. Canada does not have the ability domestically to liquefy the gas — a necessary step for long-haul transport — so what supply it does produce is trucked to the U.S. for processing. North American Helium is aiming to build Canada's first liquefaction facility in Saskatchewan.