Today we think of liquid helium as the coldest substance on the earth. Now is the time to reexamine him?

The coming helium shortage

Helium is the second most common element in the universe, so how can there be a shortage? You can say the same thing about hydrogen, which is even more common. There may be many above, but not many below. Here is what we need. Helium is not a huge market either. The global annual demand is estimated to be about 6 billion cubic feet (Bcf) or 170 million cubic meters (m3). It is difficult to determine the current price, because the price is usually negotiated by the contract between the buyer and the seller, but Cliff Cain, CEO of the rare gas consulting company Edelgas Group, gave the figure of 1800 dollars/million cubic feet (mcf). Edgar Group studies the market and advises most companies operating in the market. The overall global market for liquid helium in bulk may be about $3 billion.

Nevertheless, demand is still growing, mainly from the medical, science and technology and aerospace sectors, and “will continue to grow”, Cain said. Helium is seven times as dense as air. Replacing the air in the hard disk drive with helium can reduce turbulence, and the disk can rotate better, so more disks can be loaded into less space and consume less power. Helium filled hard drives increase capacity by 50% and energy efficiency by 23%. As a result, most high-quality data centers now use helium filled high-capacity hard drives. It is also used for barcode readers, computer chips, semiconductors, LCD panels, and fiber optic cables.

Another rapidly growing industry is consuming helium, which is the space industry. Helium is used in fuel tanks for rockets, satellites and particle accelerators. Its low density means that it can also be used for deep-sea diving, but its most important use is as a coolant, especially for magnets in MRI (magnetic resonance imaging) machines. They must be kept near absolute zero to maintain the quantum properties of magnets without losing their potential. A typical MRI machine requires 2000 liters of liquid helium. Last year, the United States conducted about 38 million nuclear magnetic resonance examinations. Forbes believes that helium shortage may be the next global medical crisis.

“Given the importance of nuclear magnetic resonance imaging in the medical community, the helium crisis should become the forefront and center for politicians, policymakers, doctors, patients and the public to discuss and find sustainable solutions. The shortage of helium is a serious problem, which directly or indirectly affects all of us.”

And party balloons.

The cost of helium will rise

If you are an aerospace company whose business depends on sending satellites into space, or an MRI manufacturer whose business depends on selling MRI machines, you will not let helium shortage hinder your business. You will not stop production. You will pay any necessary price and pass on the cost. Mobile phones, computers and all modern life need helium. There is no substitute for helium, without which we would return to the Stone Age.

Helium is a by-product of natural gas refining. The largest producer in the world is the United States (accounting for about 40% of the supply), followed by Qatar, Algeria and Russia. However, the United States national helium reserve, the largest single helium source in the world in the past 70 years, recently stopped supplying. The company is letting employees leave, and the pressure in the pipeline has been released. When 1200 psi is required for production, the pressure is now 700 psi. At least in theory, the system is currently being sold.

These documents have encountered delays in the White House, which may take some time to resolve. We will not see any market until it is resolved. Potential buyers should also be aware of contaminated supplies and ongoing legal proceedings. The supply of the large helium plant newly built by Gazprom in Amur, eastern Russia, has also been closed, and it is unlikely that there will be any production before the end of 2023, because it relies on Western engineers, who are quite reluctant to send employees to Russia at present.

In any case, it will be difficult for Russia to sell outside China and Russia. In fact, Russia has the potential to become the world’s largest producer – but this is Russia. Earlier this year, Qatar had two shutdowns. Although it has been reopened, in short, we have experienced a situation called helium shortage 4.0, which is the fourth global helium shortage since 2006.

Opportunities in helium industry

As with the helium shortage of 1.0, 2.0 and 3.0, the supply interruption of a small industry has also caused anxiety. The helium shortage 4.0 is only a continuation of 2.0 and 3.0. In short, the world needs a new supply of helium. The solution is to invest in potential helium producers and developers. There are many outside, but like all natural resource companies, 75% of people will fail.