Close menu




July 20th, 2020 | 05:50 CEST

Ballard Power, Plug Power, Royal Helium - why is helium becoming so important now?

  • Helium
Photo credits: pixabay.com

There are niches in which a lot of money is earned because the companies produce something that either many customers need and it is protected by corresponding patents or it is a product that is particularly rare and therefore valuable. An important element of our modern society is for example helium. This inert gas is needed for magnetic resonance imaging (MRI) and semiconductors, among other things. It is also of decisive importance for the development and operation of rocket technology and space research. With the increasing electrification of everyday life and the opening up of the universe, interest in helium will increase - investors are beginning to position themselves.

time to read: 2 minutes | Author: Mario Hose
ISIN: CA0585861085 , US72919P2020 , CA78029U2056

Table of contents:


    Andrew Davidson, CEO, Royal Helium Limited
    "[...] We expect the first three wells to be drilled, cased, completed and tested by the second week of March [...]" Andrew Davidson, CEO, Royal Helium Limited

    Full interview

     

    Specifics of helium

    There is no way to produce helium artificially and for this reason the available helium must be obtained from a small number of natural gas and inert gas reservoirs. The recent commissioning of natural gas liquefaction plants has helped to increase the amount of helium that can potentially be extracted.

    Purified helium is usually liquefied by a cryogenic process prior to transport. The transport costs for liquid helium are therefore generally lower because the volume is significantly smaller than that of the gaseous state. Qatar is one of the world's largest exporters of helium, followed by Algeria and Russia.

    Market of the inert gas

    The main applications of helium include magnetic resonance imaging (MRI), welding, transport and laboratory applications. The MRI sector accounts for around 20% of the demand for the inert gas. About 14% of the helium is needed for welding. The largest single customer for helium is the US space agency NASA, which requires helium for pressure regulation in the fuel supply for space shuttles. With the increase in space activities and the associated rocket launches and space shuttle missions, the demand for helium is expected to continue to rise.

    Also, budgets for space travel will certainly not be linked to the price development of helium. In other words, the price will not play a role for some customers, because overriding priorities are paramount. Other market participants will then be left behind.

    Owner of large properties

    Royal Helium from Canada is looking for additional reservoirs for helium production in the province of Saskatchewan. With more than 400,000 hectares of helium potential, the company is one of the largest holders of such properties in North America. The company also aims to become a leading producer of this high-quality resource. Due to the limited sources of the inert gas, prices are expected to rise further in the future. The company has already identified 12 targets for helium on its properties.

    Focus on Saskatchewan

    "Royals southeast Saskatchewan lands, which comprise roughly 50% of the total land holding, all show robust helium occurrences. With the strategy of full-cycle inert gas capture, refining and liquefaction, it is crucial to develop a large number of de-risked drill targets throughout the Company's significant land package. (...) The effectiveness of Royals exploration methodology, which has been demonstrated at Climax, will increase the speed with which we can de-risk these target areas," stated Andrew Davidson, CEO of Royal Helium.

    Start of performance

    While the two hydrogen companies Ballard Power and Plug Power have already gained significantly in company value, interested investors are increasingly looking for alternatives that still have price potential. Royal Helium is still at the beginning of its value development phase and currently has a market value of CAD 7.4 million. Ballard Power, on the other hand, has now reached a market capitalization of CAD 6.5 billion and Plug Power a market value of USD 2.9 billion.


    Conflict of interest

    Pursuant to §85 of the German Securities Trading Act (WpHG), we point out that Apaton Finance GmbH as well as partners, authors or employees of Apaton Finance GmbH (hereinafter referred to as "Relevant Persons") may in the future hold shares or other financial instruments of the mentioned companies or will bet on rising or falling on rising or falling prices and therefore a conflict of interest may arise in the future. conflict of interest may arise in the future. The Relevant Persons reserve the shares or other financial instruments of the company at any time (hereinafter referred to as the company at any time (hereinafter referred to as a "Transaction"). "Transaction"). Transactions may under certain circumstances influence the respective price of the shares or other financial instruments of the of the Company.

    Furthermore, Apaton Finance GmbH reserves the right to enter into future relationships with the company or with third parties in relation to reports on the company. with regard to reports on the company, which are published within the scope of the Apaton Finance GmbH as well as in the social media, on partner sites or in e-mails, on partner sites or in e-mails. The above references to existing conflicts of interest apply apply to all types and forms of publication used by Apaton Finance GmbH uses for publications on companies.

    Risk notice

    Apaton Finance GmbH offers editors, agencies and companies the opportunity to publish commentaries, interviews, summaries, news and etc. on news.financial. These contents serve information for readers and does not constitute a call to action or recommendations, neither explicitly nor implicitly. implicitly, they are to be understood as an assurance of possible price be understood. The contents do not replace individual professional investment advice and do not constitute an offer to sell the share(s) offer to sell the share(s) or other financial instrument(s) in question, nor is it an nor an invitation to buy or sell such.

    The content is expressly not a financial analysis, but rather financial analysis, but rather journalistic or advertising texts. Readers or users who make investment decisions or carry out transactions on the basis decisions or transactions on the basis of the information provided here act completely at their own risk. There is no contractual relationship between between Apaton Finance GmbH and its readers or the users of its offers. users of its offers, as our information only refers to the company and not to the company, but not to the investment decision of the reader or user. or user.

    The acquisition of financial instruments entails high risks that can lead to the total loss of the capital invested. The information published by Apaton Finance GmbH and its authors are based on careful research on careful research, nevertheless no liability for financial losses financial losses or a content guarantee for topicality, correctness, adequacy and completeness of the contents offered here. contents offered here. Please also note our Terms of use.


    Der Autor

    Mario Hose

    Born and raised in Hannover, Lower Saxony follows social and economic developments around the globe. As a passionate entrepreneur and columnist he explains and compares the most diverse business models as well as markets for interested stock traders.

    About the author



    Related comments:

    Commented by Stefan Feulner on November 24th, 2021 | 11:28 CET

    SMA Solar, Royal Helium, RWE - Beware of inflation

    • Helium

    One can almost no longer hear this topic. In addition to the rising numbers of infections due to the fourth wave in the midst of the Corona pandemic and the escalating discussions about compulsory vaccination, the scarcity of raw materials and supplies is the central issue of our time. How long before the chip crisis in the automotive industry ends, can Apple produce enough smartphones so that we can put them under the Christmas tree for our loved ones, which, by the way, is also likely to be more expensive this year than last season. Scarcity will continue to accompany society in the coming years, be prepared for it.

    Read

    Commented by Nico Popp on November 12th, 2021 | 11:57 CET

    BASF, Royal Helium, Linde: This market is at the very beginning

    • Helium

    Industrial gases are in demand - and expensive. Even gases such as Helium are not immune to price increases. Chemical giant BASF calls the noble gas valuable in a press release and, together with Linde, presented a process that can be used to extract Helium from natural gas production. In other regions, the extraction of Helium, which is used in medical devices and chip production, even succeeds independently of by-products - given the long-term dwindling production of fossil fuels, this is becoming increasingly important. We present three stocks.

    Read

    Commented by Carsten Mainitz on November 3rd, 2021 | 12:34 CET

    Royal Helium, dynaCERT, Gazprom - What is next?

    • Helium

    The oil and gas sector has long been a popular investment area. However, when it comes to gas, hydrogen company share certificates have been more in the spotlight in recent months. A more exciting and also little-noticed field is the noble gas helium. We take a broad look at the investment stories in the gas sector.

    Read