A Global Helium Shortage: Why This Investment Opportunity is Heating Up

Emerging helium applications

Helium is a critical component in many aspects of life. It’s a strategic natural resource essential in space exploration, medical technology and nuclear power industries.

In an interview with INN, First Helium (TSXV:HELI,OTCQB:FHELF) CEO Ed Bereznicki said the biggest growth area for helium will continue to be in high-tech projects, such as artificial intelligence, quantum computing areas and other sectors.

“Anytime we launch a satellite into space for communications and other uses, helium comes into play. And then, when we talk about the transitional energy future, where are we heading in that space? Small modular reactors in terms of their ongoing design. The more efficient ones will use helium as a cooling medium for more efficient power generation. We (also) need more technology for electric vehicles and other electronic equipment to aid in the green transition,” said Bereznicki.

Is there really a helium shortage?

Unlike base and precious metals, which are found in numerous countries around the world, the world’s supply of helium is less understood and is believed to mainly be located in only a handful of countries, including Qatar, the US, Algeria and Russia. Helium’s unique chemical properties and inert behavior make it a finite commodity in high demand.

The element does not readily combine with other elements, which means as it reaches the surface of the Earth, it can easily escape the planet’s gravitational pull.

The world’s top locations for helium gas exploration

Much of the world’s helium resources exist in a handful of jurisdictions, including the US, Canada, Algeria and Qatar. With only a few countries producing helium, the world’s production can be described with a single word: fragile.

For over 100 years, the US government managed the global supply of helium. Although 75 percent of all the world’s helium production has traditionally come from three locations in the US, the Federal Helium Reserve, operated by the Bureau of Land Management in Amarillo, Texas, was sold to Messer in 2024.

Helium has been deemed a critical mineral by the Canadian government, aligning it with the likes of highly sought-after minerals like copper, uranium, zinc and others. The country now has the fifth largest helium reserves in the world.

Companies looking to leverage North American helium resources include Avanti Helium (TSXV:AVN,OTC Pink:ARGYF) which focuses on the exploration, development and production of helium in Canada and the US.

First Helium is another player in the helium space, positioned to become a leading North American producer that is employing a de-risked, low-cost strategy to achieve near-term cashflow. Its flagship Worsley project strategically sits atop a helium-rich area of the Western Canadian Sedimentary Basin, north of Grande Prairie, Alberta.

As an emerging leader in helium exploration and resource development, First Helium plans to start drilling into newly identified exploration targets at the Leduc formation that could potentially lead to a production level of up to 5,000 barrels of oil equivalent per day at 0.8 percent helium. Successful drilling will also allow the company to create a second operating hub with a multi-well facility.

With the end of the Federal Helium System, a large opportunity exists for companies like First Helium to supply helium via industrial gas aggregators in the US to North America, and potentially globally as an increasingly finite and valuable commodity.

Many areas of Alberta and southern Saskatchewan naturally contain large amounts of helium. As an indication of the growing importance of helium development in Canada, the country’s largest processing facility opened near Battle Creek, Saskatchewan in April of 2021.

Commissioned by North American Helium, the C$32 million plant is expected to produce more than 50 million cubic feet of purified helium for commercial sale.

Takeaway

Helium is a rare and finite resource that is experiencing an increasing level of demand for its applications in the medical, research, aerospace and technology industries. Due to the paradigm shift in the helium supply chain, driven by the US government ending the Federal Helium System, many companies in countries like Canada are beginning to capitalize on the substantial investment opportunity that exists to participate in this space and replenish the depleting global stockpiles of this valuable noble gas. As an early mover in the nascent Canadian helium sector, First Helium is well positioned to establish itself as a leading, emerging helium supplier.

This INNSpired article is sponsored by First Helium (TSXV:HELI,OTCQB:FHELF,FWB:2MC). This INNSpired article provides information which was sourced by the Investing News Network (INN) and approved by First Heliumin order to help investors learn more about the company. First Helium is a client of INN. The company’s campaign fees pay for INN to create and update this INNSpired article.

This INNSpired article was written according to INN editorial standards to educate investors.

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The information contained here is for information purposes only and is not to be construed as an offer or solicitation for the sale or purchase of securities. Readers should conduct their own research for all information publicly available concerning the company. Prior to making any investment decision, it is recommended that readers consult directly with First Helium and seek advice from a qualified investment advisor.