Total Helium to Construct Helium Storage Cavern in the United States

Total Helium (TSXV: TOH) hinted that it is going to enter a rather new vertical through a combined venture with helium storage, its industrial gas partner. The facility will expectedly be the second such facility in the United States and also the only one that is privately owned.

By itself, the structure is set to establish within a salt cavern in Kansas, trying to fill the goal of obtaining long-term supply security and helium storage for the industry. The judgement to finally make such a facility arrives in the middle of uncertainty associated with the current Federal Helium Reserve's future, which is located in Amarillo, Texas.

Water Rights Secured for Building Storage Facility by Total Helium

Total Helium has received the water rights that are required for constructing the salt cavern storage facility. The rights are vital for creating the storage facility, which uses significant water volumes to hollow out the salt that makes the storage cavern main. Total Helium worked along with a local water rights holder to come to an agreement that is fair on both sides and is conscious of the precious water resource and the land.

Reportedly, the facility's water rights have already been reserved; meanwhile, the company persists in extending engineering and geological studies, with the permitting process underway. When the Total Helium operation becomes functional, the storage facility will have an expected capacity of 400 MMcf of helium. At the same time, it is located near a liquefaction plant and a natural gas and helium processing plant.

It is anticipated that the establishment will be owned based on the 50-50 equation partnered with the company's industrial gas partner, who remains unnamed within the release. Many such industrial gas companies are speculated to be financing the project on a monthly basis; payment is apparently already being accepted for the project's advancement. However, a dollar figure still needs to be delivered.

The monetary details of the facility proposed are not revealed, comprising anticipated expenses or the cost linked to acquiring water rights.

Total Helium on the TSX Venture previously traded at USD 0.37.

Total helium has been making efforts to establish helium storage solutions for fulfilling the industry's need for a dependable and secure long-term helium supply. Owing to helium's unique properties, including physical and chemical characteristics, make it ideal for high-tech applications like manufacturing computer chips and rocket pressurization. The same unique properties also make it challenging to store helium long-term securely.

Total helium has plans to construct a salt storage cavern which will offer long-term helium storage as well as security of supply in the industry.

Helium Storage Salt Cavern

Total Helium has developed engineering and geological studies and has also secured the water rights to construct a storage facility in western Kansas. Total Helium will build the facility pairing with its significant industrial gas partner. The process of permitting required to create the facility is being advanced by Total Helium.

When the construction gets completed, the storage facility of Total Helium will reportedly act as a national, regional, and international helium storage hub for industrial gas companies. Moreover, if warranted by demand, Total Helium will have the flexibility as well as the required water rights in order to make another hydrogen storage cavern. Along the same time, there are no official plans to carry it out, but it could be appealing in the approaching years.

Need For a New Helium Storage Facility

Unlike gas and oil, helium does not subject to seasonal demand fluctuations. This indicates that to maintain an even production of helium, effectively and safely storing helium and the ability to bring the helium to market punctually throughout the year are all vital.

The capacity to deliver a solution for storing helium is crucial for two main reasons. Primarily, helium is used by computer chip manufacturers, the aerospace industry, medical device companies, etc., and consistently demand an on-demand helium source. Secondly, owing to the significance of the above mentioned sectors, maintaining a stable helium source stored underground for on-demand use is crucial for national security.

From a business point of view, unlike wells, which are rapidly depleting, an underground helium storage facility offers a steady, non-depleting stream of revenue for Total Helium.

As per Procurement Resource, the article sheds light on the recent investment by Total Helium for joining a venture with helium storage, its industrial gas partner, to build a Helium Storage Cavern in the U.S.