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What is carbon-free helium & how can Tasmania benefit?

Snapshot

  • Natural Helium Tasmania: Carbon-Free Helium Production for Australian Medical and Technology Sectors.

  • Project Areas: Orford and Franklin licence areas (6,903 km²)

  • Helium Concentrations: Up to 5% (world-class grades)

  • Environmental Approach: Zero emissions, minimal footprint, no hydraulic fracturing

  • Target Markets: AI data centres, medical MRI facilities, technology sectors

Understanding Helium

  • Helium is a critical industrial gas essential for MRI machines, semiconductor manufacturing, aerospace applications, and data centre cooling systems. Unlike other gases, helium cannot be manufactured and must be extracted from underground geological formations. Global helium supply is constrained, with prices increasing seven-fold since the 1990s, driven by declining production and rising demand from technology sectors including AI.

  • Approximately 95% of global helium production comes as a byproduct of natural gas processing in the United States, Qatar, Russia, and Algeria. Helium concentrations in conventional natural gas fields typically range from 0.3–0.5%, requiring large-scale hydrocarbon extraction operations. This ties helium supply to fossil fuel markets and results in significant carbon emissions through associated gas processing and combustion.

  • Natural Helium Tasmania has identified geological formations containing helium concentrations up to 5% without associated hydrocarbons. With modern sampling and testing programmes, it is expected these concentrations may be even higher. The helium is believed to co-occur with nitrogen rather than methane, enabling helium extraction without fossil fuel production. This represents a fundamentally different resource model – helium as a primary product rather than a byproduct of hydrocarbon operations.

The Tasmania Discovery

  • Between 1994 and 1998, Great South Land Minerals conducted exploration drilling across southern Tasmania, investing millions of dollars. Three stratigraphic wells encountered helium concentrations ranging from 1.2% to 4.83% but were not designed to effectively test and sample the helium. At the time, helium market conditions did not support development. Current market dynamics, particularly increased demand from technology sectors and supply constraints, have transformed these historical discoveries into commercially significant opportunities.

  • Historical wells recorded helium concentrations up to 4.83% across various sandstone reservoirs, with multiple wells showing concentrations between 1.2% and 3.5%, including naturally occurring hydrogen also present in several wells. These concentrations significantly exceed the 0.3% commercial threshold for standalone helium production. Definitive resource quantification requires completion of our planned testing programme, including advanced formation evaluation and flow testing across our project areas.

  • Over $64 million has been invested in historical exploration, including several stratigraphic wells drilled by Great South Land Minerals (1994–1998) and 1,149 km of 2D seismic data acquired by Empire Energy (2001–2007). This provides substantial subsurface control across our two licence areas (Orford and Franklin). Natural Helium Tasmania will select testing locations that deliver optimal helium concentrations while minimising environmental and community impact. Site selection will be conducted in comprehensive consultation with local communities and traditional owner groups, ensuring that development priorities align with community values and environmental protection. All sites will undergo thorough environmental assessment and regulatory approval processes before any testing activities commence.

Green Helium – Environmental Advantages

  • Natural helium is produced from gas streams containing minimal or no hydrocarbons, where extraction and processing do not result in greenhouse gas emissions. Natural Helium Tasmania's resource is expected to co-occur with nitrogen as the dominant carrier gas rather than methane. Nitrogen comprises 78% of atmospheric composition and is chemically inert. Venting nitrogen after helium separation produces zero carbon emissions, unlike conventional helium extraction which involves hydrocarbon combustion and associated CO2 release.

  • Conventional helium extraction is integrated with natural gas or Liquified Natural Gas (LNG) processing facilities. These operations extract, process, and combust hydrocarbons as their primary business, with helium separation as a secondary revenue stream. Natural geological helium operations extract helium from nitrogen-dominant gas without fossil fuel involvement. The operational model, infrastructure requirements, and environmental footprint are fundamentally different.

  • Natural helium operations require significantly smaller surface footprints than conventional natural gas fields. Traditional operations involve extensive well networks, large-scale processing facilities, pipeline infrastructure, and flaring systems. Natural helium extraction uses targeted testing at specific geological locations with compact, modular processing equipment. Processing capacity requirements are lower due to higher helium concentrations. No combustion, flaring, or hydrocarbon waste streams are expected to be involved.

  • Item descriptionProject design prioritises environmental protection appropriate for Tasmania's sensitive ecosystems. Operations will utilise temporary drilling installations rather than permanent infrastructure, minimal land disturbance, and compact processing facilities. No hydraulic fracturing is required or planned. The gas stream composition (helium and nitrogen) eliminates concerns associated with hydrocarbon spills or emissions. All operations will be conducted under Tasmanian environmental regulations and monitoring requirements.

Operations and Technology

  • Small footprint operations utilise compact drilling rigs transportable by standard road vehicles, temporary rather than permanent installations, and minimal surface disturbance. The testing site requires about the size of a suburban house block during active operations. Post-drilling, surface infrastructure is limited to wellhead equipment and monitoring systems. Modern helium operations differ substantially from conventional hydrocarbon developments in scale, duration, and environmental impact.

  • No. Hydraulic fracturing is not required for this project. The target formations contain naturally pressurised helium that will flow to the surface without stimulation techniques. The geological characteristics of helium-bearing reservoirs differ from tight gas formations that require fracturing. Our testing approach will utilise conventional vertical wells to access naturally permeable reservoir rocks containing helium.

  • Once at the surface, helium extraction involves three stages. First, membrane separation using polyimide-based hollow fibre technology separates helium from nitrogen. Second, pressure swing adsorption (PSA) further purifies the helium stream to commercial specifications (99.999% purity). Third, cryogenic liquefaction using reverse Brayton-cycle refrigeration converts gaseous helium to liquid form for transportation and storage. All technologies are proven, commercially available systems used in helium operations globally.

  • Nitrogen separated during helium processing is vented to the atmosphere. As nitrogen comprises 78% of atmospheric composition and is chemically inert, this process has no environmental impact. Unlike natural gas operations that must manage methane, CO2, and other hydrocarbons, nitrogen requires no treatment, capture, or combustion. Nitrogen venting is standard practice in all helium extraction operations globally.

  • Based on analogous helium fields internationally, production well lifespans of 20–30 years are typical. Helium wells require significantly lower flow rates than natural gas wells due to helium's higher unit value. Production longevity depends on reservoir pressure maintenance, which initial testing will evaluate. Historical data from the Shittim #1 well indicates favourable reservoir characteristics, but comprehensive formation testing is required to understand reservoir deliverability and associated production profiles.

Applications and Market Demand

  • AI processing generates significant thermal loads requiring advanced cooling solutions. Data centres are implementing liquid helium cooling systems for high-performance computing infrastructure, particularly for AI processor arrays that exceed traditional air-cooling capacity. As AI deployment expands across Australian data centres, helium demand for both semiconductor manufacturing and operational cooling is projected to increase substantially. Industry forecasts indicate 6–8% annual demand growth.

  • Large-scale AI data centres require substantial helium volumes for closed-loop cooling systems. A standard 40-foot ISO container holds approximately 41,640 litres of liquid helium, valued at approximately AUD $436,000. Major AI data centre facilities may require multiple containers monthly, with ongoing supply needs for system maintenance and expansion. Australia's planned AI data centre investments represent significant domestic helium demand.

  • Magnetic Resonance Imaging (MRI) machines require liquid helium to cool superconducting magnets to approximately –269°C. Each MRI unit contains 1,500–2,000 litres of helium in closed-cycle systems requiring periodic replenishment. With Australia's ageing population and increased diagnostic imaging requirements, reliable helium supply is critical healthcare infrastructure. Supply disruptions directly impact hospital diagnostic capacity.

  • Helium is essential for semiconductor manufacturing (providing inert atmospheres and cooling during production), fibre optic cable manufacturing, aerospace applications (rocket fuel pressurisation), scientific research (cryogenics), and leak detection in critical systems. While specialised applications exist across various sectors, Natural Helium Tasmania focuses supply on medical and technology markets where demand growth is most significant.

  • Natural Helium Tasmania prioritises Australian supply, particularly for AI data centres, medical facilities, and critical infrastructure. Tasmania's proximity to eastern Australian markets and established shipping infrastructure enables efficient distribution. Australia currently imports nearly all helium requirements, creating supply vulnerability to global market disruptions. Domestic helium production strengthens Australia's technology, defence, and healthcare sector security while reducing reliance on international supply chains.

Commercial and Economic Aspects

  • Current wholesale helium prices are approximately USD $14 per cubic metre for gaseous helium, with liquid helium valued at approximately $30 per litre. A standard shipping container of liquid helium (41,640 litres) represents approximately $436,000 in value. Helium prices have increased 86% since 2019, rising from $7.57/m3 to $14.07/m3. Industry analysis projects potential prices of $70/m3 by 2040, representing continued significant appreciation driven by supply-demand imbalances.

  • Multiple supply constraints are impacting helium markets. The US Federal Helium Reserve has been depleted after decades of below-market sales. Conventional helium sources tied to ageing natural gas fields face production decline. Global transition away from fossil fuels may reduce or eliminate helium supply from natural gas processing. Simultaneously, demand is increasing from semiconductor manufacturing, medical equipment expansion, and emerging AI data centre applications. These dynamics create sustained upward price pressure.

  • Global helium supply is dominated by Qatar, United States, Russia, and Algeria, all producing helium as a natural gas byproduct. Primary helium exploration companies include Noble Helium and Helium One (Tanzania), Desert Mountain Energy and Pulsar Helium (USA), and First Helium (Canada). Natural Helium Tasmania differentiates through high-grade concentrations (5%), carbon-free production methodology, and location in a stable jurisdiction with proximity to major Australian markets.

  • Historical Tasmanian wells have demonstrated helium concentrations up to 5%, among the highest globally. Comparative concentrations: US Hugoton-Panhandle field (0.3–1.9%), Qatar LNG plants (~0.5%), Russia's Amur facility (0.5–0.8%), Tanzania's Rukwa Basin (1.0–2.6%), US Riley Ridge (~1.3%), and high-grade US fields like Pinta Dome (5.6–9.8%). Higher concentrations enable more economical extraction, simplified processing requirements, and improved project economics. Tasmania's combination of grade, location, and environmental profile is globally competitive.

Safety and Community

  • Helium is chemically inert, non-toxic, non-flammable, and non-explosive. It does not react with other elements or compounds and poses no chemical hazards. The primary safety consideration is oxygen displacement in confined spaces, which is managed through standard industrial gas handling protocols. Helium is used safely in hospitals, research facilities, and industrial applications globally. It is classified as a non-hazardous substance under Australian dangerous goods regulations.

  • Nitrogen comprises 78% of atmospheric composition and is chemically inert and non-toxic. It is not a greenhouse gas and has no environmental impact when released to the atmosphere. Nitrogen venting from helium operations simply returns nitrogen to an atmosphere already predominantly composed of nitrogen. Unlike hydrocarbon-associated gases, nitrogen requires no treatment, capture, or combustion, and presents no environmental concerns.

  • The project provides employment opportunities in flow testing, operations, and technical roles, infrastructure investment, and positions Tasmania in the emerging clean resources sector. Unlike traditional resource extraction, helium production creates value-added output for Australian technology and medical markets. The project demonstrates resource development compatible with Tasmania's environmental values and economic development objectives. We would expect up to 80 ‘smart manufacturing’ jobs to be created.

  • Natural Helium Tasmania holds two exploration licences (Orford and Franklin) covering 6,903 km² in south-eastern Tasmania. Site selection for testing and operations prioritises locations that deliver optimal helium flow test results while minimising environmental and community impact. This includes evaluating surface access, existing infrastructure, environmental sensitivity, and proximity to sensitive areas. Comprehensive stakeholder engagement is conducted with local communities, councils, and traditional owner groups throughout all stages of project development. Consultation informs site selection decisions, environmental management approaches, and operational planning. The project is committed to transparent communication of environmental assessments, regulatory approvals, and operational activities. Community input is sought early in the planning process, not after decisions are finalised. All development activities will meet Tasmanian environmental standards and reflect community values regarding environmental protection and responsible resource development.

Investment Opportunities

  • Natural Helium Tasmania is currently seeking investment partners to fund testing and development activities. Investment opportunities are structured to align with project milestones, including testing programmes, resource confirmation, and commercial development phases. For detailed investment information, prospectus materials, and current fundraising opportunities, please contact our investor relations team at info@naturalheliumtas.com.au.

  • Project development is structured in phases with corresponding capital requirements. Initial exploration phase includes subsurface studies, CSIRO soil surveys, and site preparation (estimated $2–3M). Drilling and testing phase requires approximately $5–8M for multiple wells and comprehensive formation evaluation. Commercial development phase, including processing facility and infrastructure, is estimated at $20–25M. These estimates are subject to refinement as project planning progresses. Australian Government support programmes may contribute up to 50% of commercial plant costs through Future Made in Australia and National Reconstruction Fund initiatives.

  • Subject to successful testing results and regulatory approvals, revenue generation could commence within 18–24 months of confirming commercial helium flows. This timeline assumes successful completion of an upcoming testing programme, positive resource confirmation, regulatory approvals for commercial production, and construction of modular, low-footprint processing facilities. Helium market conditions remain favourable, with established offtake interest from Australian technology and medical sectors. Detailed production and revenue forecasts will be provided to qualified investors through formal investment documentation.

  • For our natural helium projects, the key risks include: subsurface risk (helium concentrations or reservoir characteristics differing from historical data), technical risk (drilling or production challenges), regulatory risk (delays in approvals or changes in regulations), market risk (helium price fluctuations), and operational risk (cost overruns or schedule delays). These risks are mitigated through: substantial historical data ($64M prior investment), proven geological models, experienced management team, supportive regulatory environment in Tasmania, and strong helium market fundamentals. Comprehensive risk assessment is provided to potential investors through formal due diligence materials.

  • Natural Helium Tasmania offers several competitive advantages: exceptionally high helium grades (up to 5%), carbon-free production methodology, location in a stable jurisdiction with strong ESG credentials, proximity to major Australian markets, substantial historical data reducing exploration risk, and an experienced management team with a proven track record. Compared to international helium projects, Tasmanian operations benefit from established infrastructure, a supportive regulatory framework, and alignment with Australia's technology and healthcare sector growth. For comparative analysis and detailed investment metrics, please contact our investor relations team.

Project Development

  • Current priorities include integrated subsurface studies, CSIRO soil gas surveys, seismic data reprocessing, and site selection for initial testing programmes. Sites will be selected based on the lowest subsurface risk and minimal environmental impact, determined through comprehensive consultation with local communities and traditional owner groups. Testing is planned for 2026, utilising advanced formation evaluation technologies including quadrupole mass spectrometry, wireline logging, and flow testing. Successful drilling results will enable contingent resource estimation and pilot project feasibility assessment. Subject to testing success and regulatory approvals, production could commence within 18–24 months of confirming commercial helium flows.

  • Natural Helium Tasmania maintains regular communication with stakeholders through project updates, information sessions, and direct consultation. For employment inquiries, investment information, regulatory documentation, or general project information, stakeholders should monitor project communications through official channels. The project is committed to transparent information sharing and responsive stakeholder engagement throughout all development phases.

    For general information: info@naturalheliumtas.com.au

This FAQ document was prepared in December 2024 and contains 35 frequently asked questions covering project overview, environmental approach, operations, market applications, commercial aspects, community engagement, and investment opportunities. Information is subject to revision as project development progresses. For current information, please refer to official project communications or contact the project team directly.

Contact us.

info@naturalheliumtas.com.au

4/52 Charles Street
Launceston, TAS 7250