Helium is a finite resource that plays a critical role across several industries including medical imaging, thermal management systems for batteries, aerospace engineering, chemicals and pharmaceuticals, semiconductor manufacturing, fiber optics, particle physics, scientific balloons, and many more. Its high thermal conductivity, chemical inertness, and cryogenic properties uniquely lend itself to its applications with limited or no available alternatives in some cases. Owing to helium’s key role in the energy transition (e.g. electric vehicles and batteries), digital transformation (electronics, AI, telecoms, etc.), and space exploration, it is classified as a critical mineral by governmental bodies, e.g. the EU and Canada. Despite its importance, due to a lack of production diversification and geopolitical strains, the helium market is renowned for its susceptibility to chronic supply shortages and price volatility.
IDTechEx’s report critically assesses the outlook for helium production, the role of helium in key industries, the availability and viability of helium substitutes, and helium reclamation technologies. Market forecasts are given in yearly helium demand segmented by its main applications and yearly production capacity by region.
Figure 1: Key production sources and applications of helium. Source: IDTechEx
Helium in the Manufacturing Industry
Helium is widely used in manufacturing processes due to its cooling and inert properties. It is essential for thermal management during semiconductor production, fiber optics, and is a crucial component for quality control processes such as leak testing of parts including HVAC equipment, fuel tanks, battery packs, aerospace components, etc. It is also key for welding processes to produce numerous parts, including electrical and automotive components. In particular, advancing semiconductor manufacturing processes towards smaller nodes (critical for AI, autonomous vehicles, etc.) will also increase the semiconductor industry’s reliance on helium, with no currently viable alternatives.
This report critically examines how these industries are navigating chronic helium supply challenges. Through interviews with key players, e.g. manufacturers of reclamation technologies such as Telstar and Rosendahl Nextrom, the report highlights the trends and market activity in helium conservation (e.g. investing in reclamation technologies) and adoption of helium substitutes where possible.
Helium as a Cryogen
With a normal boiling point of 4.2K, helium is the only liquid at temperatures close to absolute zero (0K). It is therefore critical for operations of superconducting devices such as MRI and NMR machines in medical and chemical industries, particle accelerators such as the Large Hadron Collider, and some nuclear fusion reactors. For quantum computing, several qubit modalities require cooling between 10mK and 4K in some aspects of the initialization, manipulation, and readout chain. To access mK (1mK = 0.001K) temperature, the use of helium within cryostats is currently essential.
In recent decades, MRI scanners have been the leading application of helium by end-use. However, improvements in hardware design (e.g. sealed-for-life designs), software (e.g. AI, deep learning), and material developments (e.g. metamaterials, high-temperature superconductors) are heralding a success story in reducing helium requirements. This report critically analyses the technological advances driving emerging trends in helium demand for MRI, NMR, quantum computing, and more.
Helium in the Aerospace Industry
Helium plays a significant role in many aspects of the aerospace industry. Helium is used as an inert gas to purge hydrogen systems, pressurize ground and flight fluid systems, leak-test components, and as a shielding gas during precision welding. It is also used as a cryogen to cool components. Over the last five years, the frequency of orbital launches has surged, with commercial entities becoming increasingly pivotal to the industry’s expansion. This growth underscores the critical role of helium, further cementing its status as an indispensable resource within the sector. IDTechEx’s report provides a 10-year forecast detailing the anticipated demand for helium within the aerospace sector.
Trends in Helium Production
Although helium production capacity is expected to increase with Qatar and Russia expected to ramp up production, it does not necessarily guarantee a disruption-free helium supply moving forward when considering geopolitical tensions.
A growing number of small independent players are exploring primary/green helium from geological reserves where it is present in non-hydrocarbon gases. Nonetheless, elucidating the prospects for production capacity in the medium and long term requires extensive data and validation. These projects are leveraging low-capex separation systems, e.g. membrane and PSA technologies to upgrade and purify helium at well sites or local processing facilities. Informed by insights gleaned from providers of helium separation technologies, e.g. UGS and Generon, this report comprehensively compares the merits and challenges of helium separation and purification technologies.
Source: idtechex.com