In recent years, recurring helium shortages and historically high prices have spawned an unprecedented number of helium exploration startups around the world, especially in North America.
Much of this activity has focused on the Four Corners region of the southwestern United States and Saskatchewan and Alberta in Canada. Some early efforts include: north american helium, Thor’s resources, Helium from Canada and Navajo Transitional Energy Corporation (formerly Tacitus) has been producing helium for several years, and a handful of all-listed exploration start-ups have announced plans to begin producing gaseous helium later this year or early 2024. Together, these startups could add 100-150 million cubic feet (MMCF) of capacity to North American supply by mid-2024, according to the announced plans.
Avanti HeliumBased in Calgary, Alberta, with a focus on the Greater Knappen region of southern Alberta, Montana and southwestern Saskatchewan, the company plans to invest in the 2023 first plant to process gas from the Sweetgrass project. It recently announced plans to have a helium recovery unit (HRU) operational by the fourth quarter. . Avanti has secured land for his HRU in Liberty County, Montana. Avanti owns approximately 78,000 acres of land in the greater Knappen region and is expected to supply gas that is typically 98% nitrogen and approximately 1% helium. Avanti also announced a toll agreement with Paradox Midstream LLC. Paradox recently announced plans to file for Chapter 11, so Avanti may need to find another paying partner if it wants to sell bulk liquid helium. Avanti has not yet announced the expected capacity of its suppliers or his HRU.
blue star heliumis based in Subiaco, Western Australia and conducts helium exploration in Arizona, Colorado, New Mexico and Utah. Brewster’s Voyager project in Los Animas County, Colorado is the company’s most advanced effort, and the company recently announced a three-well drilling program that is expected to be HRU operational by the fourth quarter of 2023. Brewster has not announced suppliers or expected production capacity. Its HRU’s.
desert mountain energyis based in Vancouver, British Columbia and has focused on producing helium from its site in the Holbrook Basin in northeastern Arizona. Purchased from Generon, his HRU has completed construction and is currently in commissioning at the Macquarie plant. Desert Mountain Energy touts the fact that the Macquarie plant will be powered by solar power, with backup power provided by hydrogen produced from the Macquarie oil field. Desert Mountain Energy expects to produce gaseous helium with a minimum purity of 99.995%. The capacity of the Macquarie plant has not been disclosed.
first heliumis based in Calgary, Alberta and conducts helium exploration in Alberta, Canada. We are developing the Worsley Project in Northern Alberta and the Lethbridge Project in Southern Alberta. The Worsley Project, where First Helium owns more than 60,000 acres, is more advanced, with the company targeting a late Q1 2024 start-up for first deliveries of crude helium with a minimum purity of 95%. The company also announced in May that it had signed a long-term take-or-pay contract with an unnamed “large global industrial gas supplier.” First Helium has not identified a HRU supplier or expected plant capacity.
royal heliumis based in Saskatoon, Saskatchewan and has helium projects in Saskatchewan and Alberta, Canada. The Steveville project in Royal, southern Alberta, which it acquired as part of its 2022 acquisition of Imperial Helium, is more advanced and the company previously said it would start in the second quarter of 2023. Royal’s HRU, being built by Arjae, Design Solutions, is expected to produce 99.999% pure gaseous helium with a raw gas throughput of 10-15 MMCF per day. Although not officially announced, information has leaked that SpaceX will be the primary taker of Royal’s helium production. This is important because end-users rarely purchase helium directly from producers.
As we move forward, it will be very interesting to see which of these companies have been able to implement the plans communicated in the press release and which have not. Based on experience so far, it is safe to assume that the start-up timing of some helium plants will deviate from the set dates. It’s also worth noting that these companies have not been proactive about their expectations for helium production capacity. This is probably because they don’t want to appear to be underperforming their own projections in the future.
In any case, it seems that we are entering an era in which an increasing number of small helium producers are entering the market. This will provide more frequent opportunities for Tier 2 gas companies to secure supply directly from producers, gradually eroding the dominance of the helium majors.
