SASKATOON, SK, Nov. 15, 2021 /CNW/ - Royal Helium Ltd. ("Royal"
or the "Company") (TSXV: RHC) is pleased to report that the
Government of Saskatchewan today
announced their Helium Action Plan, with the goal of supplying 10%
of the global helium market share by 2030.
The Government's news release follows:
GOVERNMENT OF SASKATCHEWAN
LAUNCHES HELIUM ACTION PLAN
Province aims to supply ten per cent of global helium market
share by 2030
Today, the Government of Saskatchewan released its Helium Action
Plan: From Exploration to Exports, which outlines how the
province aims to become a world leader in helium production and
export over the next decade, with a goal to supply ten per cent of
the global helium market share by 2030.
"In Saskatchewan, helium
exploration and production are leading to more wells, more jobs,
more facilities and, ultimately, more exports," Energy and
Resources Minister Bronwyn Eyre
said. "We have high helium concentrations in the province and some
of the most attractive geology in the world for low-emission helium
production."
The Helium Action Plan: From Exploration to Exports,
which provides policy and program commitments to support and grow
the entire helium value chain, is focused on exploration,
production, innovation, processing and export infrastructure. The
provincial government has also expanded the Saskatchewan
Petroleum Innovation Incentive (SPII) to include helium
projects.
Achieving the Helium Action Plan's goal to supply ten per
cent of the world's helium market share by 2030 will create
significant economic benefits in Saskatchewan, including:
- Creating more than 500 new permanent jobs;
- Supporting thousands of construction and service sector
jobs;
- Increasing production through an additional 150-plus dedicated
helium wells;
- Building up to 15 helium purification and liquefaction
facilities;
- And generating annual helium exports worth more than
$500 million
Canada currently has the
fifth-largest known helium resources in the world, with
considerable underground reserves located in Saskatchewan. The province's unique geology
enables extraction of helium from dedicated wells that yield high
concentrations of the commodity but generate a low greenhouse gas
emissions profile, which is up to 99 per cent less carbon intensive
than in other jurisdictions.
In April 2021, North American
Helium (NAH) opened its $30 million
Battle Creek Helium Purification Facility, the largest in
Canada, which also qualified under
the provincial Oil and Gas Processing Investment Incentive
(OGPII).
"This announcement further solidifies Saskatchewan's position as a best-in-class
jurisdiction in which to explore, build infrastructure, and produce
helium that can serve global markets," North American Helium
President and Chief Operating Officer Marlon McDougall said. "North American Helium is
a leader in all of these areas and is planning to rapidly expand
its liquid and gaseous helium productive capacity to replace
currently depleting sources of helium from hydrocarbon fields with
reliable new long-term supply with significantly lower
emissions.
In May 2021, Saskatoon-based Royal Helium announced a
significant helium discovery at its Climax project, which has the
potential to be one of the largest helium discoveries in
Saskatchewan history.
"Royal Helium is proud to play a leading role in the sustainable
development of Saskatchewan's
world-class helium resources, alongside our neighbors North
American Helium and in concert with the Government of Saskatchewan," Royal Helium President and CEO
Andrew Davidson said. "This is a
tremendous opportunity for Saskatchewan to become a major supplier of
helium, which is critical for healthcare and high-tech industries
both locally and around the world."
Helium is a highly desirable commodity used in medical research,
semiconductor manufacturing, space exploration, fibre optics,
nuclear power generation and other advanced technology sectors.
Prices for helium have increased substantially over the past few
years and are expected to continue to rise due to increased global
demand and shortage of supply. According to market estimates, the
global helium market could potentially double by 2030.
SPII offers transferable royalty/production tax credits for
innovative, made-in-Saskatchewan
projects at a rate of 25 per cent of eligible costs, including
capital and operating expenditures, up to a maximum of $5 million in credits. OGPII provides qualified
Saskatchewan infrastructure
projects with a 15 per cent transferable royalty credit, based on
capital expenditures, up to a maximum of $75
million in credits. Under both programs, government
investment follows up-front private investment.
For more information or to read the full plan please visit
www.saskatchewan.ca/helium-action-plan.
For more information, contact:
Robin Speer
Energy and Resources
Regina
Phone: 306-519-5006
Email: robin.speer@gov.sk.ca
Jill Stroeder
Energy and Resources
Regina
Phone: 306-787-6315
Email: Jill.stroeder@gov.sk.ca
Royal Helium Ltd.
Royal controls over 1,000,000 acres of prospective helium land
in southwestern and south-east Saskatchewan. All of Royals' lands are in
close vicinity to highways, roads, cities and importantly, close to
existing oil and gas infrastructure, with a significant portion of
its land in close proximity to existing helium producing locations.
With stable, rising prices and limited, non-renewable sources for
helium worldwide, Royal intends to become a leading North American
producer of this high value commodity.
CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING
INFORMATION
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Provider (as that term is defined in the policies of the TSX
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accuracy of this release.
This release includes certain statements that may be deemed
to be "forward-looking statements". All statements in this
release, other than statements of historical facts, that address
events or developments that management of the Company expects, are
forward-looking statements. Although management believes the
expectations expressed in such forward-looking statements are based
on reasonable assumptions, such statements are not guarantees of
future performance, and actual results or developments may differ
materially from those in the forward-looking statements. The
Company undertakes no obligation to update these forward-looking
statements if management's beliefs, estimates or opinions, or other
factors, should change. Factors that could cause actual
results to differ materially from those in forward-looking
statements, include market prices, exploration and development
successes, continued availability of capital and financing, and
general economic, market or business conditions. Please see
the public filings of the Company at www.sedar.com for further
information.
SOURCE Royal Helium Ltd.