The Global Helium Outlook Shawn Smith, Helium and Rare Gases Product Manager Air Products and Chemicals, Inc.

Transcription

1 The Global Helium Outlook Shawn Smith, Helium and Rare Gases Product Manager Air Products and Chemicals, Inc. Helium is a unique industrial gas. Its physical and chemical characteristics make it an essential material for both current and future applications. Yet there is only a finite amount of helium available on earth. These two forces increasing demand and limited supply have resulted in rising cost for helium world-wide and increased interest in the conservation and recycling of this valuable resource. Small and Powerful Poised on top of the periodic table, helium and hydrogen exhibit many similar properties. Hydrogen is freely available at a relatively low cost and would be ideal for many applications if it were not extremely flammable. Therefore, in applications were flammability is an issue, helium is the material of choice. Properties of Helium Properties of Helium Boiling point/range (1 atm) Boiling point/range (1 atm) Critical temperature Critical temperature Density Density Molecular weight 4 g/mol Specific gravity (air = 1) Vapor density 0.14 (air = 1) Water solubility g/l Color Colorless Stability Stable under normal conditions Odor No odor warning properties One of helium s most useful properties is its extremely low boiling point, which is the lowest of any material. Helium is also the only material that at atmospheric pressure does not turn into a solid even at absolute zero temperature. These properties make helium ideal for a wide variety of industrial, commercial and research applications, as shown in Table 1. Air Products and Chemicals, Inc., 2008

2 TABLE 1. PROPERTIES AND APPLICATIONS OF HELIUM PROPERTY Lowest boiling point; does not solidify at atmospheric pressure and 0K Second lightest element (after hydrogen) Smallest molecular size Chemically inert Very high specific heat and thermal conductivities Radiologically inert (no radioactive isotopes) Highest ionization potential Extremely low solubility Very high sonic velocity Superfluid below 2.2K APPLICATION Liquid cooling of LT Superconductors Purging liquid hydrogen systems Lifting medium for balloons, airships Leak detection Carrier gas analytical, semiconductor Gaseous cooling fiber optics Gas quenching metals Heat transfer medium in fusion reactors Metal arc welding aluminum Plasma arc melting titanium Deep sea diving gases Metal coating Cooling of LT Superconductors Today, the principal markets for helium are for cooling superconductors, such as MRI equipment in hospitals, analytical and leak detection applications, welding, producing fiber optics, semiconductors, flat panel and solar materials, and inflating balloons. Other 18% MRI 20% Semiconductor 7% Other Superconductors 8% Analytical / Leak Detection 12% Fiber Optics 7% Welding 11% Balloons & Blimps 17% FIGURE 1: Estimated 2008 Worldwide Helium Demand A Finite Supply Here on earth, the radioactive decay of heavy metals continuously forms helium in the earth s crust. However, the vast majority of this helium gradually permeates through the earth s surface and, being much lighter than air, rises through the atmosphere and eventually dissipates into outer space. Given Air Products and Chemicals, Inc., US

3 today s technology and today s value, it is not economical to extract atmospheric helium from the earth s atmosphere, which contains less than percent helium. However, helium can be a constituent in some natural gas fields. This occurs when radioactive decay of heavy metals and natural gas formation take place in the same area and the resultant gases are trapped in the earth's crust by non-permeable rock formations, which can result in helium concentrations of up to 1 percent or higher. At today s economic conditions, any concentration of helium above approximately 0.2 percent is considered worthwhile as a potential helium source, providing the total natural gas field is large enough to justify long-term operation of a helium extraction plant. Helium in History Helium's existence was first established by examining a spectrograph of the sun s radiation, and the name helium is derived from Helios the Greek sun god. Helium was first discovered on earth in 1905 as a high concentration in a natural gas field near Dexter, Kansas. Fields in this area of the United States were the first to be developed to process helium for commercial and military use. The United States remains the world s principal source of helium, as seen in Figure 2. Shortly after its discovery, the U.S. government recognized helium s strategic value for both commercial and military applications, and since that time has put regulations in place to manage and store this precious resource. Today, through the Bureau of Land Management (BLM), the U.S. government still owns approximately 700 million Nm 3 of helium inventory and supplies about 30 percent of the global demand for helium feedstock. In the meantime, the natural gas fields in and around Texas, Oklahoma and Kansas, which have long been the principal sources of helium for the United States and the world, have begun to deplete. Production of helium is now declining at the rate of about 10 percent to 15 percent each year. Therefore, the availability of the U.S. BLM reserves does not increase U.S. production capacity, but only stabilizes it at current levels for the next decade or so. Qatar, 7% Russia, 3% Poland, 2% Algeria, 12% US, 76% FIGURE 2: 2008 Worldwide Helium Production Air Products and Chemicals, Inc.,

4 Outlook for the Future Figure 3 shows significant natural gas fields around the world that are known to contain helium in quantities that have potential as a commercial sources. The solid arrows point to fields or plants that are already producing helium. The hollow arrows point to fields that are known to contain helium, but are not currently productive for one reason or another. The best prospects for helium supply in the future are in the Middle East and North Africa, where very large natural gas fields have up to 0.5 percent helium. It is estimated that in Algeria alone, the amount of helium in the natural gas produced today exceeds 150 million Nm 3 per year enough to fulfill nearly 90 percent of today s worldwide helium demand. However, less than 25 million Nm 3 per year or under 20%, is recovered, with the vast majority lost as a waste stream from liquefied natural gas (LNG) production or when the natural gas is burned by its industrial or domestic consumer. New plants for helium recovery and liquefaction are expected to come on-stream in this region, as well as in Russia, in the near future which will add incremental volume to the worldwide helium system. BRITISH COLUMBIA / ALBERTA, CANADA EAST HANOVER FIELD NORTH SEA SALZWEDEL, GERMANY ODOLANOW, POLAND ORENBURG, RUSSIA RILEY RIDGE, WYOMING IRKUTSK, RUSSIA MOAB, UTAH SOUTHEAST COLORADO FOUR CORNERS AREA NORTH FIELD, QATAR SICHUAN, CHINA MEREENIE FIELD, NORTHERN TERRITORY HUGOTON / PANHANDLE FIELDS HASSI R'MEL FIELD, ALGERIA Helium Producing Non-Helium Producing WOODADA FIELD, AUSTRALIA FIGURE 3. Natural Gas Fields Containing Helium The Clear Leader Currently, a total of just 14 plants produce helium at 12 locations around the world, with total capacity to produce liquid helium estimated at approximately 165 million Nm 3 per year. Air Products is the global leader in helium supply, with nearly 60 million Nm 3 per year in production capacity and a 32 percent market share. Through diligent management of its global supply chain, Air Products and Chemicals, Inc.,

5 resource management, and an advanced distribution system, Air Products has maintained reliability of supply to its customers, avoiding declaration of force majeure in a helium market where shortages are becoming a reality. Having pioneered many of the helium extraction, production, distribution and storage technologies that are relied upon by the industry today, Air Products is also a global leader in LNG technology, a critical component that can help reduce helium recovery costs by as much as 50 percent. Air Products maintains the world s largest helium production and distribution system and operates numerous facilities around the world. In October 2007, Air Products announced plans for a helium joint venture with Matheson Tri-Gas to build and operate a liquid helium production plant near Big Piney, Wyoming to process helium recovered from natural gas in Wyoming s Riley Ridge field. This field is the second largest heliumrich natural gas field in the U.S. and is believed to contain sufficient helium reserves to support production for decades. Annual production is expected to be 5 million Nm 3 per year at start-up, with anticipated future capacity expansions. Air Products also is actively pursuing additional new helium sources around the world. Safeguarding the Future Even with the current tightness in helium supply today, it is believed that there are sufficient global helium reserves to satisfy demand for the foreseeable future. However, as a finite and nonrenewable resource, it is prudent to protect this valuable material. Aside from seeking alternatives to helium in its various applications, the answers may lie in three possible areas of initiative: Conservation: Maximizing the extraction of helium from all natural gas production facilities around the world, regardless of whether it is needed to satisfy current demand, and minimizing losses in the distribution and supply chain through to the final point of use. Also, developing more efficient methods to utilize helium in existing processes and eliminate waste. Recovery: Capturing effluent helium from a given process and reprocessing it for eventual reuse. Recycling: Capturing effluent helium from a given process and returning it to the same process at the same location (after on-site reprocessing, if necessary). Air Products offers a variety of value-added services to our customers, including a helium consulting service that provides technical advice regarding minimizing helium waste and improving efficiency. As a global leader in helium purification technology and supply, we use our knowledge to identify opportunities for helium recovery and recycling. Then, we work with our customers to minimize helium loss at their facilities through the effective utilization of helium recovery and recycle technologies. Air Products and Chemicals, Inc.,

6 For More Information Let us put our knowledge to work for you. Contact us to learn more about Air Products helium capabilities and how they can benefit your operation or for a leak detection or gas audit to help optimize your operation. Air Products and Chemicals, Inc Hamilton Boulevard Allentown, PA Tel Fax gigmrktg@airproducts.com tell me more Air Products and Chemicals, Inc., US