sask. government wants province to become world leader in helium production

Currently, Saskatchewan produces about one percent of the world’s helium.

“Helium, as we know, is much more than party balloons. It is another forward-looking product that is giving impetus to advanced technology sectors, medical research, space exploration, nuclear power generation and semiconductor manufacturing,” said Energy and Resources Secretary Bronwyn Eyre .

There is no substitute for it.– Bronwyn Eyre

Helium’s low boiling and liquefaction points and its ability to readily conduct heat make it sought after in the medical field for use in MRIs.

Helium is also used to cool nuclear reactors and as temperature control in the aerospace industry.

“There is no substitute for it. Limited supply and increasing demand, and that global demand is expected to rise significantly in the coming years, with estimates that the helium market will double by 2030,” Eyre said.

According to the province’s Helium Action Plan, about 90 percent of the world’s helium supply comes from natural gas producers, which capture small amounts of helium from the natural gas stream during production.

Alternatively, helium can be extracted from the earth using wells. The province hopes to benefit from this method.

Canada has the world’s fifth-largest known supply of helium, much of which is located in Saskatchewan, according to the province.

Government offering tax credits reduces red tape

The province plans to boost helium production by providing businesses with a range of support, including administrative assistance, reduction of bureaucracy and tax credits.

Patty Thomas, vice president of geosciences at North American Helium, said the tax cuts are key to encouraging companies to take the risk of drilling wells that may not produce.

“Each of these wells costs a million dollars to drill. It’s a big deal,” Thomas said.

North American Helium operates a $32 million helium purification plant near Battle Creek in southwestern Saskatchewan, where much of the province’s helium activity is concentrated.

Eyre said there are nine active helium wells in the province, with a further 24 wells in the process of drilling.

By 2030, she expects there will be 150 helium sources in Saskatchewan.

The government estimates that the increase in helium production will create about 500 new jobs and $500 million in annual exports.

“We see it as a welcome development,” said Erika Ritchie, opposition NDP critic for Environment, Energy and Resources.

“We have called for diversification in our resource sector as a way to move forward, as a way that will be sustainable and prepare workers in Saskatchewan for the clean energy economy.”

Ritchie added that landowners need adequate protection from companies seeking access to property.

Both Ritchie and Eyre praised the low greenhouse gas emissions of helium and said skilled oilfield workers are well suited to the industry.

“Made in Saskatchewan helium is green. Our unique geology means we can produce helium from dedicated wells with high concentrations but with a low greenhouse gas emissions profile,” Eyre said.