Up, Up and Away with Helium Stocks; The Critical Element Powering Tomorrow's Tech

Rhea-AI Summary

New Era Helium Inc. (NASDAQ: NEHC) has recently listed on NASDAQ following its business combination with Roth CH V Holdings. The company controls over 137,000 acres in Southeast New Mexico with 1.5 billion cubic feet of proved and probable helium reserves. The global helium market is projected to reach $27.06 billion by 2030, growing at a CAGR of 8.3% from $15.48 billion in 2023.

NEH has announced a non-binding joint venture with Sharon AI to build a 90MW net-zero Tier 3 data center in the Permian Basin, expected to offset 250,000 metric tons of CO2 annually. The helium industry is seeing increased activity, with Reliance Industries recently acquiring a 21% stake in Wavetech Helium for $12 million.

Positive

• Controls 137,000 acres with 1.5 billion cubic feet of proved and probable helium reserves
• Strategic joint venture planned for 90MW net-zero data center
• Successfully listed on NASDAQ, potentially improving access to capital
• Operating in a growing market projected to reach $27.06 billion by 2030

Negative

• Joint venture with Sharon AI is non-binding, indicating uncertainty in execution
• Faces competition from established players like ExxonMobil and Air Products

Insights

Market Research Analyst

The helium market shows strong growth potential with projections reaching $27.06 billion by 2030, representing a robust 8.3% CAGR. The critical supply-demand dynamics are particularly noteworthy - demand is expected to nearly double by 2035 while supplies remain constrained. This scarcity creates significant pricing power, with helium commanding around 100x the price of natural gas at $300+/mcf.

The market structure is oligopolistic, with major players like ExxonMobil controlling 20% of global supply from a single facility. New Era Helium's entry with 1.5 billion cubic feet of reserves and strategic positioning in the Permian Basin represents a significant development in this concentrated market. Their planned AI data center venture adds an innovative vertical integration angle that could provide competitive advantages in the high-growth tech sector.

Tech Expert

The helium market's intersection with technology sectors is particularly compelling. The gas is indispensable in semiconductor manufacturing, fiber optic production and most critically, in cooling systems for data centers and AI infrastructure. New Era Helium's planned 90MW net-zero Tier 3 data center project with Sharon AI demonstrates the growing convergence of helium supply and tech infrastructure.

The facility's liquid-cooling design and carbon capture capabilities, projected to offset 250,000 metric tons of CO2 annually, represent an innovative approach to sustainable tech infrastructure. This vertical integration strategy could provide significant competitive advantages in both the helium and data center markets, particularly as AI computing demands continue to surge.

Vancouver, Kelowna, and Delta, British Columbia--(Newsfile Corp. - December 10, 2024) - Investorideas.com, a go-to investing platform, issues a report on helium stocks and the supply and demand for the gas, featuring New Era Helium Inc. (NASDAQ: NEHC), an exploration and production company sourcing helium produced in association with the production of natural gas reserves within the Permian Basin.

Read the full article on Investorideas.com
https://www.investorideas.com/News/2024/energy/12090Helium-Stocks.asp

According to Maximize Market, "The global helium market is experiencing significant growth, driven by its essential applications across various industries. According to Maximize Market Research, the market is projected to reach US $27.06 billion by 2030, up from US $15.48 billion in 2023, with a compound annual growth rate (CAGR) of 8.3% during the forecast period."

Continued from the research: "Helium's inert properties make it indispensable in semiconductor manufacturing and fiber optic cable production, ensuring high-quality outputs."

"Liquid helium is also crucial for cooling magnets in MRI machines, facilitating advanced medical diagnostics."

"In Aerospace and Defense, Helium is used in pressurizing and purging systems, welding applications, and as a coolant in space operations, underscoring its versatility."

With multiple high value applications, demand is expected to almost double by 2035, according to IDTechEx and supplies are running low. Players in the sector see a big opportunity in this gas.

New Era Helium Inc. (NASDAQ: NEHC), just announced its listing on the NASDAQ as the result of closing its previously announced business combination with Roth CH V Holdings, Inc., a wholly-owned subsidiary of Roth CH Acquisition V. Co. (NASDAQ: ROCL) (NASDAQ: ROCLU) and (NASDAQ: ROCLW).

The transaction was approved by ROCL's stockholders on November 26, 2024.

From the news: The trading of the Company's shares on Nasdaq represents a pivotal milestone in New Era Helium's mission to establish itself as a leading consolidator of helium and natural gas production. With over 137,000 acres in Southeast New Mexico and 1.5 billion cubic feet of proved and probable helium reserves, NEH is well-positioned to drive growth in this critical sector, expected to see a surge in demand amid growth in data centers powering artificial intelligence.

Continued from the news : In an announcement last month, NEH announced a non-binding joint venture with Sharon AI, Inc. ("Sharon AI") to build a 90MW net-zero Tier 3 data center to be located within the Permian Basin. This joint venture combines Sharon AI's expertise in high-performance computing with NEH's extensive helium and natural gas reserves. The state-of-the-art facility will feature a liquid-cooled Tier 3 data center powered by sustainable energy, offsetting approximately 250,000 metric tons of CO₂ annually through carbon capture technology.

E. Will Gray II, Chairman and Chief Executive Officer of New Era Helium (NEHC), said: "Our Nasdaq listing marks a significant moment in our corporate journey, enhancing our public profile within the industry, and broadening our reach to institutional investors in the AI datacenter, and Helium markets. Thank you to all of our shareholders and partners whose unwavering support has been instrumental in driving our ongoing success."

Reuters recently reported that "Reliance Industries' (REL.NS) U.S. unit has bought a 21% stake in U.S.-based helium production company Wavetech Helium for $12 million, the conglomerate said on Thursday, in a move aimed at expanding its low-carbon energy segment."

The stock purchase agreement closed November 27, 2024.

According to Wavetech Helium's website, they control Helium gas reserves (including proven) and resources in E-SE Colorado / W Kansas and NW Montana, two of the premier Helium fairways in the world.

From the website: "This inert gas is used across many high-tech, science, medicine, defense, and manufacturing industries. Over the last 20 years, Helium's demand growth and decline in supply forced pricing to over $300+/mcf, about one hundred times current U.S. natural gas pricing. Drilling for Helium is nearly identical to natural gas extraction, allowing for transferring knowledge and technology from the fossil fuels sector to find and extract Helium."

One of the key players in helium, Air Products and Chemicals offers helium in its gas product portfolio. With $12.1 billion dollars in sales and a strong existing base business delivering double-digit EPS growth since 2014, Air Products is the number one hydrogen supplier in the world.

Air Products says it is a "Pioneer of many of the helium extraction, production, distribution, and storage technologies still in use today."

Talking about their market and applications they say, "The extremely low temperature of liquid helium is used to maintain the superconducting properties of magnets in applications such as Magnetic Resonance Imagery (MRI), Nuclear Magnetic Resonance (NMR) spectroscopy, and particle physics research. Gaseous helium is used as an inert shielding gas in metal arc and laser welding. It is also used as a coolant to transfer heat effectively, thanks to its high thermal conductivity in the fibre optics and electronics industries. It serves as a carrier gas for gas chromatography (GC) in analytical laboratories and as a leak detection gas in a wide range of industries. Being both lighter than air and non-flammable, helium is used to inflate both balloons and airships."

According to Cowboystatedaily.com "One of the largest producers of helium in the world comes from the ExxonMobil plant in LaBarge. Now the facility, which provides 20% of the world's supply, is set to expand and could double its workforce in the next year."

Continued from the article: "Wyoming is at the center of this commodity play for helium, just like it is already with bentonite, thermal coal, rare earths, trona, uranium and other strategic minerals.

One of the largest producers of helium in the U.S. comes from Wyoming, with ExxonMobil's backing, as well as Texas, Kansas and Oklahoma.

Other major global players include energy-rich Qatar, a peninsular Arab country, and the North African country of Algeria, according to a report prepared by geologist Kelsey Kehoe of the Wyoming State Geological Survey (WSGS) in December.

Over the past 38 years, Wyoming has seen considerable interest by ExxonMobil in Wyoming, and it's only going to grow."

With helium being a non-renewable resource with limited supplies, the demand based on numerous applications makes this a sector to watch. The new helium stock in town, New Era Helium Inc. (NASDAQ: NEHC) said in its press release "NEH believes the Nasdaq listing will enhance its visibility and attract U.S. investors interested in energy infrastructure and sustainable innovation, further underscoring the value of its assets and forward-looking projects."

Research natural gas and helium stocks at Investorideas.com

https://www.investorideas.com/Companies/NaturalGas/Stock_List.asp

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FAQ

What is the projected market size for helium by 2030?

The global helium market is projected to reach $27.06 billion by 2030, growing at a CAGR of 8.3% from $15.48 billion in 2023.

How many acres does New Era Helium (NEHC) control in Southeast New Mexico?

New Era Helium controls over 137,000 acres in Southeast New Mexico with 1.5 billion cubic feet of proved and probable helium reserves.

What is New Era Helium's (NEHC) planned joint venture with Sharon AI?

NEHC has announced a non-binding joint venture with Sharon AI to build a 90MW net-zero Tier 3 data center in the Permian Basin, which is expected to offset 250,000 metric tons of CO2 annually.

When did New Era Helium (NEHC) list on NASDAQ?

New Era Helium listed on NASDAQ in December 2024 following its business combination with Roth CH V Holdings, which was approved by stockholders on November 26, 2024.