A major discovery of a helium reservoir in Minnesota has the potential to alleviate critical helium shortages in various industries across the U.S. Earlier this year, Pulsar Helium, a resource exploration company, announced promising findings from an independent evaluation of its helium drilling site near Babbitt. The assessment revealed that a single well, which represents 13% of the total land Pulsar owns in Minnesota, contains 22.9 million cubic feet of helium. This is about 1% of the U.S.’s total helium production in 2023 and 0.4% of global production, according to the U.S. Geological Survey.
Pulsar Helium’s president and CEO, Thomas Abraham-James, expressed optimism about the initial findings, which came from a relatively shallow well. Further exploration and deeper drilling at the site are planned for later this year. The lab results from June showed exceptionally high helium concentrations, reaching up to 14.5%, which is unprecedented in the industry. According to Jon Gluyas, a geoenergy professor at Durham University, helium concentrations as low as 0.3% are considered commercially viable, making these findings particularly significant.
However, estimating the total volume of helium in the reservoir is complex, as the geology beneath the drilling site is likely to be inconsistent. The amount of helium stored depends on the porosity and connectivity of the rocks, and there will likely be areas that are more or less suitable for storage. Despite these uncertainties, some experts suggest that the total helium volume could reach 176 million cubic feet, which would represent a significant addition to the U.S. helium supply.
Currently, the U.S. produces about 2.1 billion cubic feet of helium annually, and the Minnesota site could potentially increase domestic production by 8.3%. Helium is essential in many industries, including scientific research, medical technology, space exploration, and manufacturing, but supply chains have struggled to meet demand, leading to a global shortage for over a decade. Abraham-James highlighted the severity of the situation, noting that many users are not receiving their full allocations, which is hampering technological progress.
There is optimism that Pulsar’s site in Minnesota could be commercialised for helium production. If extraction begins, the gas would be released from the ground in a manner similar to a deflating balloon, with production peaking early. Gluyas described the discovery as both exciting and commercially viable, noting its potential to significantly boost U.S. helium supplies.
The discovery of this helium reservoir in Minnesota could provide a much-needed boost to the U.S. helium supply, offering hope for industries facing long-standing shortages.
Pulsar Helium Inc (TSXV:PLSR) is a leading primary helium exploration and development company. Its flagship Topaz Project in Minnesota, USA, flowed North America’s highest concentration of helium at 14.5%. Commercially viable helium project concentrations begin @ 0.3%.
