Largest helium plant in Canada now operating in Saskatchewan

Canada’s largest helium purification plant is now operating in Saskatchewan and can produce over 50 million cubic feet per year of purified helium for commercial sale — equal to filling 400,000 party balloons a day.

The new $32-million plant is located near Battle Creek in southwest Saskatchewan, near Maple Creek, and is owned and operated by North American Helium Inc. (NAH).

Helium is a commodity in high demand worldwide since it can be used in medical research, semiconductor manufacturing, space exploration, fibre optics and advancements in nuclear power generation.

“This facility will create and support local jobs, enable the province to scale up helium production, and grow export capacity,” said MLA Bronwyn Eyre, minister responsible for Energy and Resources, in a news release. “It will also further diversify our natural resource sector and position Saskatchewan as a leading supplier of a critical element that the world needs.”

Helium is included on both the Canadian and American lists of critical minerals, considered necessary for the modern economy, emerging technologies or that face supply chain risks. Helium prices have risen by more than 160 per cent since 2017 due to increased global demand and shortage of supply. Canada currently has the fifth-largest helium resources in the world, with significant underground reserves in Saskatchewan.

“This project is another example of the resiliency of our economy and another step toward economic recovery and a return to growth,” said Cypress Hills MLA Doug Steele. “Saskatchewan has the natural resources the world needs, and it is important we continue providing a competitive investment environment to attract projects such as this that will create jobs in our communities, grow our economy and build a strong Saskatchewan.” The NAH helium purification project was approved for the province’s Oil and Gas Processing Investment Incentive (OGPII) program, which provides new or expanded gas processing and liquefaction facilities with a 15-percent transferrable royalty credit, based on capital expenditures, the news release said.

“We are very excited to start up our second helium plant in Saskatchewan ahead of schedule and anticipate running a significant helium exploration and development program into the future,” said Marlon McDougall, NAH president and Chief Operating Officer.

“This is an important milestone in the development of a new source of reliable green helium supply and longterm sustainable helium production industry in Saskatchewan,” echoed Nicholas Snyder, NAH chairman and Chief Executive Officer.

“Our company will continue working with our partners and relevant stakeholders to ensure that we can grow our nitrogen-based helium production as a replacement for declining legacy sources of hydrocarbon-linked helium supplies in the lower 48 states.” Saskatchewan is one of the few jurisdictions in the world that can support drilling dedicated helium wells rather than as a byproduct of hydrocarbon production, the news release said. This makes helium production significantly more environmentally friendly in Saskatchewan than in competing jurisdictions.

With the NAH plant, there are now nine active helium wells in the province and 24 in the drilling process. The Government of Saskatchewan expects the number of helium wells will eventually surpass 100.