Royal Helium Reports That the Saskatchewan Government Launches Helium Action Plan – Province Aims to Supply 10% of Global Helium Market Share by 2030
November 15, 2021
SASKATOON, SASKATCHEWAN – November 15, 2021. Royal Helium Ltd. ("Royal" or the "Company") (TSXV: RHC) is pleased to report that the Government of Saskatchewan today announced their Helium Action Plan, with the goal of supplying 10% of the global helium market share by 2030.
The Government's news release follows:
GOVERNMENT OF SASKATCHEWAN LAUNCHES HELIUM ACTION PLAN
Province aims to supply ten per cent of global helium market share by 2030
Today, the Government of Saskatchewan released its Helium Action Plan: From Exploration to Exports, which outlines how the province aims to become a world leader in helium production and export over the next decade, with a goal to supply ten per cent of the global helium market share by 2030.
"In Saskatchewan, helium exploration and production are leading to more wells, more jobs, more facilities and, ultimately, more exports," Energy and Resources Minister Bronwyn Eyre said. "We have high helium concentrations in the province and some of the most attractive geology in the world for low-emission helium production."
The Helium Action Plan: From Exploration to Exports, which provides policy and program commitments to support and grow the entire helium value chain, is focused on exploration, production, innovation, processing and export infrastructure. The provincial government has also expanded the Saskatchewan Petroleum Innovation Incentive (SPII) to include helium projects.
Achieving the Helium Action Plan's goal to supply ten per cent of the world's helium market share by 2030 will create significant economic benefits in Saskatchewan, including:
- Creating more than 500 new permanent jobs;
- Supporting thousands of construction and service sector jobs;
- Increasing production through an additional 150-plus dedicated helium wells;
- Building up to 15 helium purification and liquefaction facilities;
- And generating annual helium exports worth more than $500 million
Canada currently has the fifth-largest known helium resources in the world, with considerable underground reserves located in Saskatchewan. The province's unique geology enables extraction of helium from dedicated wells that yield high concentrations of the commodity but generate a low greenhouse gas emissions profile, which is up to 99 per cent less carbon intensive than in other jurisdictions.
In April 2021, North American Helium (NAH) opened its $30 million Battle Creek Helium Purification Facility, the largest in Canada, which also qualified under the provincial Oil and Gas Processing Investment Incentive (OGPII).
"This announcement further solidifies Saskatchewan's position as a best-in-class jurisdiction in which to explore, build infrastructure, and produce helium that can serve global markets," North American Helium President and Chief Operating Officer Marlon McDougall said. "North American Helium is a leader in all of these areas and is planning to rapidly expand its liquid and gaseous helium productive capacity to replace currently depleting sources of helium from hydrocarbon fields with reliable new long-term supply with significantly lower emissions.
2021, Saskatoon-based Royal Helium announced a significant helium discovery at its Climax project, which has the potential to be one of the largest helium discoveries in Saskatchewan history.
"Royal Helium is proud to play a leading role in the sustainable development of Saskatchewan's world-class helium resources, alongside our neighbors North American Helium and in concert with the Government of Saskatchewan," Royal Helium President and CEO Andrew Davidson said. "This is a tremendous opportunity for Saskatchewan to become a major supplier of helium, which is critical for healthcare and high-tech industries both locally and around the world."
Helium is a highly desirable commodity used in medical research, semiconductor manufacturing, space exploration, fibre optics, nuclear power generation and other advanced technology sectors. Prices for helium have increased substantially over the past few years and are expected to continue to rise due to increased global demand and shortage of supply. According to market estimates, the global helium market could potentially double by 2030.
SPII offers transferable royalty/production tax credits for innovative, made-in-Saskatchewan projects at a rate of 25 per cent of eligible costs, including capital and operating expenditures, up to a maximum of $5 million in credits. OGPII provides qualified Saskatchewan infrastructure projects with a 15 per cent transferable royalty credit, based on capital expenditures, up to a maximum of $75 million in credits. Under both programs, government investment follows up-front private investment.
For more information or to read the full plan please visit www.saskatchewan.ca/helium-action-plan.
For more information, contact:
Energy and Resources
Energy and Resources
Royal Helium Ltd.
Royal controls over 1,000,000 acres of prospective helium land in southwestern and south-east Saskatchewan. All of Royals' lands are in close vicinity to highways, roads, cities and importantly, close to existing oil and gas infrastructure, with a significant portion of its land in close proximity to existing helium producing locations. With stable, rising prices and limited, non-renewable sources for helium worldwide, Royal intends to become a leading North American producer of this high value commodity.
For more information, please contact the Company.
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This release includes certain statements that may be deemed to be "forward-looking statements". All statements in this release, other than statements of historical facts, that address events or developments that management of the Company expects, are forward-looking statements. Although management believes the expectations expressed in such forward-looking statements are based on reasonable assumptions, such statements are not guarantees of future performance, and actual results or developments may differ materially from those in the forward-looking statements. The Company undertakes no obligation to update these forward-looking statements if management's beliefs, estimates or opinions, or other factors, should change. Factors that could cause actual results to differ materially from those in forward-looking statements, include market prices, exploration and development successes, continued availability of capital and financing, and general economic, market or business conditions. Please see the public filings of the Company at www.sedar.com for further information.