MARKETS: Helium demand could rise as nuclear reactor developers advance gas-cooled designs

(SpaceEnergy) Helium could become an increasingly important input for the nuclear energy industry as developers advance gas-cooled small modular reactors (SMRs), potentially creating a new source of demand amid continuing global supply constraints.

Pulsar Helium, a helium exploration and development company listed in Canada and the UK, highlighted the emerging market in its 9 October industry commentary, citing progress by US nuclear technology developer X-energy.

X-energy's Xe-100 reactor uses pressurised helium to transfer heat from its core to a steam generator, rather than the water used in conventional pressurised-water reactors. The design combines helium coolant with TRISO fuel and a graphite-moderated pebble-bed core.

The reactor is designed to produce steam at approximately 565°C, compared with around 275–285°C for a conventional pressurised-water reactor. Higher operating temperatures could allow the technology to supply industrial process heat as well as electricity, potentially replacing fossil-fuel combustion in suitable manufacturing applications.

Each Xe-100 module is designed to generate approximately 80 MW of electricity or 200 MW of thermal power. X-energy's standard four-unit configuration would provide around 320 MW of electrical capacity.

Proposed deployments include a four-unit installation at Dow's Seadrift industrial complex in Texas and another four-unit project in the US Pacific Northwest supported by Amazon. Both projects are targeting deployment during the 2030s.

Unlike conventional nuclear coolants, helium is chemically inert and remains gaseous under the reactor's operating conditions. The gas circulates within a closed primary cooling system, meaning demand would arise principally from initial reactor charging and subsequent replenishment rather than continuous consumption.

Pulsar said commercial deployment of helium-cooled SMRs could establish an additional market for the gas, although the scale of demand would depend on reactor construction volumes, coolant inventories and replenishment requirements.

The potential new application comes amid disruption to existing helium supply chains. Pulsar cited a 7 October report by EnterpriseAM indicating that helium shipments were recovering more slowly than crude oil following disruption in the Gulf, with Asian import patterns changing materially during the first half of 2026.

Helium is already classified as a critical raw material by the European Union and a critical mineral by Canada, reflecting its importance to industrial and technological applications and the risks associated with concentrated supply.

The Xe-100's planned industrial heat and electricity applications could broaden helium's role in energy infrastructure if the technology reaches commercial deployment. However, Pulsar did not provide estimates of additional helium consumption, reactor coolant requirements or the potential effect on market prices.