Helium is sourced as a byproduct of natural gas, which is produced naturally through the radioactive decay of uranium and thorium. It is mostly found and commercially produced from gas deposits in the US, Qatar, Algeria, Russia, and Canada, and is subsequently processed and purified into crude or Grade-A helium. IDTechEx explores helium separation and purification techniques alongside applications and challenges within the helium market in their latest report, “Helium Market 2025-2035: Applications, Alternatives, and Reclamation”.
Helium concentrations
Investment in separateion equipment during natural gas processing becomes all the more worthwhile when helium concentration in raw gas sources exceeds ~0.3%, specifically because the value of helium is several orders of magnitude higher than natural gas. Nitrogen rejection units – a cryogenic system paired with helium rejection systems, are typically used to obtain raw helium at concentrations of ~0.5-3%. This can then be upgraded into crude helium which has a concentration of ~50-70% using membranes, pressure swing adsorption, or a combination thereof. Membranes or pressure swing adsorption is then used to purify the helium further and can achieve a 90% or greater helium concentration.
Ultra-pure grade A helium with a concentration of 99.995% or greater, required for many key applications, is obtained using pressure swing adsorption. Purified helium can be sold to transfill sites or directly to end-users, with liquified helium, made from cryogenic process, being more economical to distribute due to its greater density.
Applications for helium
Semiconductor manufacturing is an example of an application that requires the purest form of helium. The wafer cooling process within this application is one of the main uses for helium due to the gas’s high thermal conductivity, where no alternative could successfully fulfill the same niche requirement.
Helium-4 is the main helium isotope used in many applications; however, helium-3, which can be produced in nuclear reactors is even rarer. One of the key uses for helium-3 is in quantum computing, which requires a blend of isotypes 3 and 4 to reach ultra-low temperatures, close to absolute zero, in order to stabilize qubits or read them out, which generally need temperatures between 4 kelvin and 10 millikelvin to function.
Challenges within the market
Geopolitical tensions can cause issues with the production and distribution of helium, particularly in two of the main countries for helium production, Qatar and Russia, where sanctions and other geopolitical strains may put the supply chain at risk. Due to the limited locations of helium production, past scheduled downtimes, plant accidents, or maintenance shutdowns have had a knock-on effect of supply shortages.
In order to conserve helium as much as possible, alternatives may be adopted in processes such as leak testing where forming gas, a blend of 5% hydrogen in nitrogen could be used. However, while this approach is being adopted and developed, in applications that require high reliability, helium is still the preferred choice. For example, hard vacuum leak tests for aerospace components will still require helium as it can provide the most sensitivity, which is crucial for high-end applications. Welding applications where helium is used as a shielding gas is also moving towards using other inert gases like argon, while gas chromatography for chemical analysis can use hydrogen and nitrogen as alternatives.
Utilizing alternatives to helium where possible could allow for a greater conservation of helium, which could prove to be necessary for the market going forward. IDTechEx reports that since 2005, there have been 4 supply shortages of helium, each resulting in high price volatility, with the price of helium having almost doubled since 2021. Due to tensions surrounding countries where helium is primarily produced, there are also challenges with the time-constrained nature of transportation and logistics of liquid helium. IDTechEx’s report, “Helium Market 2025-2035: Applications, Alternatives, and Reclamation”, explores activity from a growing number of independent players to source primary ‘green’ helium from geological reserves across countries such as the US and Canada, which could potentially help diversify the helium supply chains.
For more information on this IDTechEx report, including downloadable sample pages, please visit www.IDTechEx.com/HeliumMarket.