The US sells its helium. Will balloons and MRIs be okay?

The way we get helium – used for everything from lifting rockets and balloons to cooling nuclear reactors and the machines used in an estimated 40 million MRI scans performed across the country every year – is about to change due to an auction of the federal helium. reserves.

The United States last month auctioned its federal helium reserves, located near Amarillo, Texas, to a private company, raising concerns that the supply of the substance could be disrupted.

Representatives of the medical technology, aerospace, compressed gas, semiconductor and technology industries have called on the Biden administration to delay the sale.

Helium is essential in hospitals, computers and rockets

Helium cools the magnets used in MRI scanners. It also cools nuclear reactors, is used in the production of semiconductor chips and lifts rockets. Among the best-known applications, balloons represent only a small portion of demand.

Helium is a byproduct of natural gas extraction and also occurs naturally during radioactive decay in the Earth's crust.

Why does the government sell helium?

The United States is the the world's largest producer of helium.

In 2020, the Bureau of Land Management, the nation's public land agency, said it was auctioning the federal system to meet 2013 requirements. Helium Stewardship Actrequiring the government to sell its helium assets in a privatization initiative.

This move was intended to remove the government from the marketing process and “enable the private sector to further develop this industry to meet the supply needs of the United States, creating a sustainable economic model and jobs for Americans ” said William Perry Pendley, director of the agency. deputy policy director, said in a statement.

The auction began in July 2023 and put helium supplies, storage, natural gas resources and 420 miles of pipelines from Texas to Oklahoma and Kansas at stake. On January 25, the bids were released, showing that Messer LLC, a domestic subsidiary of German industrial gas company Messer Group, was the highest bidder.

The government has a maximum of 130 days to accept or reject the bids.

Asked about supply concerns, Messer said in a statement: “We understand the importance of maintaining consistent, reliable operation of this vital resource.”

There is fear of a 'supply chain crisis'

Supply chain issues are at the heart of debates and lobbying efforts around helium supply, especially when it comes to MRIs

Phil Kornbluth, a helium industry consultant, said the industry has faced “nine years of shortages” since 2006.

The Compression Gas Association, a trade group representing industries that rely on helium, urged the White House in January postpone privatization because of what they called a potential “supply chain crisis” that could disrupt the availability of helium, forcing companies to find replacement suppliers.

“Any disruption to the supply chain would leave the U.S. dependent on a country in the Middle East, a region in the midst of war and attacks on shipping,” said Rich Gottwald, chairman of the trade group.

“From computer chips to medical imaging and the energy sector, helium is critical,” he said. “This poorly structured and poorly timed sale would make life-saving MRIs, the chips that connect everything from computers to cars and airplanes, less accessible and have an immediate impact on America's national security.”

Premier Inc., a North Carolina company that serves more than 4,350 hospitals and health care systems, is discussing alternatives, such as whether hospitals can use CT scans in some cases or should prioritize clinics that have the only MRI machine in have access to a wide area.

“We are thinking ahead,” said Soumi Saha, senior vice president of government affairs. “Our goal is to make sure this never becomes a problem.”

Scott Whitaker, the president of health technology company AdvaMed, said the government needed to address concerns about MRI supplies

“Timely, critical patient care would suffer if helium supplies were further curtailed,” Mr. Whitaker said.

In October, trade groups representing the semiconductor, aerospace and medical imaging and technology industries also called for a delay.

But despite the concerns, the Interior Ministry said in a response to questions on Wednesday that the sale “is not expected to meaningfully change the availability of helium.” The government has not said it will delay privatization.

Helium shortages seem unlikely

Shortages have already been easing since the second half of 2023 due to a dip in demand from the chip industry, and major changes in helium supply would not be likely in the short term during the government review.

“We could return to a tight balance between supply and demand sometime this year,” Mr. Kornbluth said.

The global outlook points to more abundant supply in the future, with a project by Russia's major natural gas producer Gazprom in operation since September and a plant in Qatar expected to come online in 2027.

Institutions have been urged to find ways to deal with the uncertainties. During a shortage in 2022, the National Science Foundation researchers said to apply for financing for equipment to recycle or reuse helium.

Joseph DiVerdi, a chemist at Colorado State University, said the shortages have put pressure on researchers to find alternatives. In his own laboratory, they switched from helium gas to hydrogen gas for a chromatography project.

“We come up with solutions,” he said. “So I'm an optimist. But in the meantime, we continue to keep our feet to the fire.”