The gas that could make Australia a player in global semiconductor supply chain | The Business

The war in the Middle East has threatened one-third of the global helium supply after Iranian missile strikes hit Qatar's Ras Laffan gas plant in March. Spot prices have doubled since then and long-term contract rates have also been trending upwards. Arup George from UNSW says the gas is in high demand because it's used in the manufacture of microchips and semiconductors. Consequently, it was essential for the expansion of data centres and artificial intelligence. It is also critical to cool superconducting magnets in MRI machines.

Helium is the second-lightest gas in the world, and this low weight means when it is extracted from underground, it floats up into the atmosphere, never to be recovered, making it a finite resource. It can be mined as a by-product of liquid natural gas (LNG) extraction, and experts say there is potential for Australia to export it. Eric May from the Future Energy Export Cooperative Research Centre says helium is likely to be present in commercial quantities in up to six of Australia's 10 natural gas plants. Yet, the country's only operator in Darwin closed in 2023 after its deposits ran out. There are now calls for helium to be added to the critical minerals list to help support industry expansion.

One company looking to capitalise on Australia's helium reserves is Gold Hydrogen, an ASX-listed company focusing on the discovery and development of natural hydrogen and helium.
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