In a significant development for the industry, the Canadian Government has recently announced investments in helium exploration in Canada.
The country, known for its rich natural resource deposits, has emerged as a promising destination for helium exploration, with helium recently added to Canada’s list of 31 critical minerals.
Recently, the Canadian Government announced funding for a publicly traded helium company, signalling their intent to grow the nation’s helium portfolio.
With vast, relatively untapped helium reserves, we take a look at how funding for helium exploration in Canada can transform the country into a global helium powerhouse.
Reinforcing the helium supply chain is essential
The helium supply chain is vital for a wide range of technologies that underpin our modern world. While its association with party balloons might downplay its significance, helium’s unique properties are irreplaceable in many fields.
One crucial application is in healthcare. Liquid helium acts as the preferred coolant for MRI machines, enabling doctors to perform essential medical diagnoses.
Its role extends to scientific research as well, as it’s used to cool down superconductors, which are vital components in scientific instruments like particle accelerators.
Helium’s importance is further emphasised in its industrial applications. In the ever-growing world of electronics, helium is essential for semiconductor production. It creates an inert environment to prevent unwanted reactions during chip creation, a cornerstone of modern electronics.
Furthermore, its light weight makes it ideal for lifting airships and purging rocket fuel systems, playing a role in both transportation and space exploration.
Disruptions in the helium supply chain can have cascading effects. Price fluctuations and shortages can impact everything from medical care to cutting-edge research and space exploration.
Given helium is a finite resource, a secure and reliable supply chain is vital to ensure continued technological advancement across various sectors.
An overview of Canada’s helium resources
Canada possesses helium resources estimated at 70 billion cubic feet (Bcf), according to the United States Geological Survey, ranking it fifth globally in terms of helium reserves.
This substantial reserve has garnered significant investment interest, particularly in Alberta and Saskatchewan, where helium exploration has been the focal point. Notably, since 2018, the area of land leased for helium exploration in Saskatchewan has quadrupled.
Responding to this burgeoning interest, the government of Saskatchewan has devised an action plan aimed at facilitating helium development within the province. The primary objective of this plan is to contribute 10% of the world’s helium production by 2030.
Presently, Saskatchewan stands as the sole province in Canada engaged in commercial helium production, accounting for approximately 1% of the global helium supply.
In parallel, Alberta has taken steps to accommodate potential helium producers by introducing a new royalty rate of 4.25% in 2020. This rate adjustment reflects the province’s commitment to fostering helium exploration and extraction activities.
Investing in domestic helium exploration
In an effort to capitalise on the nation’s rich helium resources, Canada’s Government recently announced financial backing of CAD$3m for Royal Helium.
The investment will help develop the company’s 1,000,000 acres of land and leases in Saskatchewan for helium exploration and production.
With the country now looking to offer fiscal support for its helium exploration projects, Canada is poised to become a powerhouse on the global helium stage.
