From aiding rocket launches to enabling cutting-edge satellite technologies, helium plays a pivotal role in this evolving industry, and with the increased commercialisation of space reshaping the exploration landscape, demand for this critical resource is surging. Despite this, a limited global supply of helium poses unique challenges to the sector, and thus the importance of securing a stable and sustainable supply chain is becoming of the utmost importance.
Liquid helium is indispensable for advanced space technologies and serves as a critical pressure agent for cryogenic fuel tanks in space rockets. As a rocket consumes fuel, such as liquid oxygen or hydrogen, helium is introduced to maintain tank pressure and preserve the rocket's structural integrity. Thanks to its chemically inert nature, being non-flammable, remarkably light, and a liquid at temperatures where everything else freezes, helium is ideal for this role. The dramatic clouds of gas often seen venting from rockets on the launch pad are likely helium 'boiling off' at the ultra-cold temperature of -268.9ºC.
Helium, in both its gaseous and liquid forms, possesses unique and irreplaceable properties, making it a critical resource in many jurisdictions, such as the European Union and Canada. It is essential for semiconductor manufacturing, which underpins the electronics and satellite manufacturing industries, helium’s exceptional thermal conductivity and chemical inertness make it invaluable for the rapid cooling of chips during the manufacturing process.
As space exploration becomes more ambitious, with plans for lunar bases, expanded satellite constellations, and human missions to Mars, global demand for helium is expected to rise accordingly. The growing number of governmental and private organisations venturing into space has ushered in an era of unprecedented activity, driving the demand for helium at an accelerating pace.
Government bodies, fuelled by rising geopolitical tensions and the potential militarisation of space, are looking to capitalise on the remarkable opportunities of 21st century space exploration. What was once a competition between the global superpowers of China, Russia, and the United States, has now evolved into a widespread contest featuring a host of international players. The number of private entities joining the new space race has also increased, with companies like SpaceX, Blue Origin, and Rocket Lab leading the charge.
Global investment in space startups has totalled $17.9bn in 2023 according to Space Impulse, as venture capitalists continue to fund the sector, and this influx of funding has fuelled intricate advances in satellite technology, space tourism, and potential Martian missions. According to McKinsey, the space economy is estimated to present a $1.8tn opportunity by 2035, up from $630bn in 2023.
While the increased accessibility of space brings exciting opportunities, it also introduces significant logistical challenges. Every satellite deployment, orbital experiment, and mission relies on a consistent supply of helium - a finite resource currently facing critical shortages. Helium is recoverable in meaningful quantities from only a handful of locations worldwide, and this scarcity has led to frequent, prolonged supply disruptions. This underscores the importance of establishing reliable helium sources in stable, "safe jurisdictions" to sustain the rapid growth of the space exploration industry. Presently, helium is largely produced as a byproduct of natural gas extraction – however, a persistent global shortage and the associated increase in the value of helium has created a new industry of finding deposits in the Earth that are not associated with significant hydrocarbons, where helium is the primary economic driver. Being the primary product, it is anticipated that primary helium projects will go some way to alleviate the global helium shortage with the opportunity to produce the helium required, something that is not possible when a byproduct.
As advances in space exploration develop at pace, so does the potential for helium's applications within the sector. In addition to its current critical uses, helium could play a role in supporting advancements in renewable energy storage and next-generation propulsion technologies. While these innovations are still in development, they represent exciting possibilities for the future of space exploration and energy systems on Earth, and as companies and government programmes push the boundaries of the new space race, the role of helium in these endeavours cannot be overstated.
Tom Abraham-James, CEO & president Pulsar Helium
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