Higher helium prices could create significant opportunities for regions with large undeveloped reserves, particularly Canada, which has the world's fifth-largest potential primary helium reserves, according to TD Economics in a note Thursday.
Helium is a critical input for semiconductor fabrication, TD Economist Mauri Hall said in a note.
Most of the Canadian resources are concentrated in the provinces of Alberta and Saskatchewan, where helium deposits have significantly higher concentrations than the global average, the bank said.
Canadian helium resources have average concentrations of around 1%, compared with about 0.1% globally, providing a significant cost advantage through more efficient extraction, said TD. In addition, many Canadian helium deposits are found alongside nitrogen rather than methane, resulting in lower production emissions and less exposure to fossil-fuel price volatility.
With Saskatchewan aiming to expand helium exports to meet 10% of global usable helium demand by 2030, the next three to five years could provide a key growth opportunity for Canadian helium producers to strengthen their position in the global market, said Hall.