Push for Australia to extract helium as Iran war impacts global supply

Helium is used for more than just party balloons. (iStock: Multicoloured balloons against blue sky, simonkr, CC by iStock) The conflict in the Middle East has threatened one-third of the global helium supply. It can be a by-product of liquid natural gas (LNG) extraction and experts say there is potential for Australian exports. There are calls for helium to be added to the critical minerals list to help support industry expansion. Link copiedShareShare articleFor most people, helium is the quirky gas used to inflate party balloons and make silly voices. But the very property of this gas that makes it so attractive to party planners is the same reason it has become a hot property globally. Helium is the second-lightest gas in the world and this low weight means when it is extracted from underground, it floats up into the atmosphere, never to be recovered, making it a finite resource. Global supplies took a massive hit when about one-third of the world's helium was taken out by Iranian missile strikes on Qatar's Ras Laffan gas plant in March. Spot prices have doubled since then and long-term contract rates have also been trending upwards. Microchip production requires precision technology, including helium. (AP: Darin Oswald/Idaho Statesman) Arup George is an engineer from the University of New South Wales. He said in the digital age, the gas was in high demand because it was used in the manufacture of microchips and semiconductors. Consequently, it was essential for the expansion of data centres and artificial intelligence. Engineers also use helium's tiny molecules to check for gas leaks in microchip labs and even clear the jets of hydrogen rockets. "It is inert, that means it does not interact with other materials, it does not contaminate things," he said. Helium's most essential uses come from the fact it is the coldest liquid substance known to man, not becoming liquid until -269 Celsius, making it an effective coolant. Brisbane startup Magnetica is developing low helium MRI machines. (ABC News: Tanya Love) It is critical to cool the superconducting magnets in MRI machines. "The liquid helium will evaporate over time. So it does require topping up," Duncan Stovell, of MRI company Magnetica, said. He is the chief executive of a Brisbane-based startup developing special small-scale MRI machines that will focus on scanning limbs, with the aim of setting up in smaller hospitals. "Having a lot of the equipment closer to the joint that we're imaging means that we're able to get excellent resolution," Mr Stovell said. Duncan Stovell says they are developing low helium MRIs. (ABC News: Michael Lloyd) Their design uses far less helium than a typical MRI and only uses it in gas form, as opposed to liquid form. That is because globally, helium is scarce. It is only produced when radioactive elements like uranium and thorium break down deep in the Earth's crust. It makes its way upwards and is usually found in deposits alongside natural gas. The co-location of helium and natural gas presents a clear opportunity for Australia's gas industry. Professor Eric May is the chief executive officer of the Future Energy Export Cooperative Research Centre, a not-for-profit designed to bridge the gap between industry and academia. Eric May says Australia has underground reserves of in-demand helium. (ABC News: Mitchell Edgar) They estimate helium is likely to be present in commercial quantities in up to six of Australia's 10 natural gas plants. Yet, the country's only operator in Darwin closed in 2023 after its deposits ran out. Australia will now import all its helium after the only production plant in the southern hemisphere shuts down. At present, any helium extracted as part of LNG mining is released in tail gases and into the atmosphere, never to be recovered. One of those looking to capitalise on the helium reserves is Gold Hydrogen, an ASX-listed company focusing on the discovery and development of natural hydrogen and helium. Neil McDonald says they have discovered helium deposits in South Australia. (ABC News: Paul Adams) "We found the world's best purities in helium at 36.9 per cent, and it's extraordinary," managing director Neil McDonald said. "And we're a green helium. We're not part of a natural gas formation or an LNG supply." A helium well at a site run by Gold Hydrogen on the Yorke Peninsula. (Supplied) The company is aiming for commercial production within two years, but building the extraction technology requires hundreds of millions in investment. "We believe that what we have encountered should be fast-tracked with the conditions that we're seeing at the moment," Mr McDonald said. Estimates suggest there is somewhere between 20 and 150 years of commercially extractable supply of helium left underground. That is why advocates like Eric May and Arup George are calling for it to be returned to the federal government's critical minerals list, three years after it was drop

Push for Australia to extract helium as Iran war impacts global supply

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Push for Australia to extract helium as Iran war impacts global supply

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