Canadian Helium Producer Pursues Federal Assistance for Nation's First Liquefaction Facility
A Calgary-based helium extraction company is actively seeking financial support from the federal government to construct Canada's first-ever helium liquefaction plant. North American Helium, which began production in 2020 and currently supplies approximately three percent of global helium, relies exclusively on United States facilities to process its gas into liquid form.
Financial Support Crucial for $100-Million Project
The company has outlined plans for a $100-million liquefaction facility that would be built in southwest Saskatchewan, where North American Helium explores and produces helium across a massive nine-million-acre land package. According to Brad Borggard, the company's chief financial officer, federal assistance is essential to move forward with this ambitious project.
"I'm not trying to get the federal government to pay for the whole thing," Borggard explained. "But funding support would go a long way to us being able to fund the rest or else being able to raise private capital to get this liquefier project off the ground."
The company has suggested that tax credits or other financial mechanisms from Ottawa could provide the necessary boost to secure additional private investment. At the time of publication, the Ministry of Industry had not provided comment on the proposal.
Global Supply Chain Vulnerabilities Exposed
The ongoing conflict in the Middle East has dramatically highlighted weaknesses in the worldwide helium supply network. Recent disruptions in Qatar, where production facilities accounting for an estimated one-third of global helium were affected by Iranian actions, have driven prices upward and created new demand pressures.
Helium serves numerous critical industrial functions beyond its well-known use in party balloons. The element is essential for manufacturing semiconductor chips, cooling magnetic resonance imaging machines, and producing fibre optics. In Canada, helium is officially designated as a critical mineral, recognizing its importance to both economic stability and national security.
Technical Advantages and Market Position
North American Helium employs a distinctive extraction method, sourcing helium from nitrogen-based reservoirs located approximately 2.5 kilometres beneath the earth's surface. This approach differs from most producers who extract helium from natural gas pockets.
While industry research indicates that helium gas dominates most market transactions, Borggard noted that liquid helium represents about 80 percent of his company's sales. This discrepancy underscores the importance of establishing domestic liquefaction capabilities.
Strategic Benefits and Construction Timeline
Borggard described the liquefaction project as "shovel-ready" and estimated that construction would require 18 to 20 months following a final investment decision. The facility would significantly reduce Canada's dependence on American processing infrastructure while creating new sales opportunities in international markets.
Fen Osler Hampson, a professor of international affairs at Carleton University in Ottawa, observed that the federal government typically seeks to develop downstream processing capacity whenever possible. This aligns with broader economic strategies to enhance domestic value-added production.
Despite its Canadian headquarters and operations, North American Helium maintains strong American connections. The company was founded by U.S. citizen Nicholas Snyder, and most of its investors are based in the United States, according to Borggard.
The proposed liquefaction facility represents a significant step toward establishing a more resilient and self-sufficient helium industry in Canada, particularly as global supply chains face increasing geopolitical pressures and market uncertainties.
