Avanti Helium Corp., a Calgary-based helium developer, said Oct. 26 that civil construction at its Sweetgrass project in Montana is largely complete, with construction of the processing building underway and major helium recovery equipment scheduled for delivery in the coming weeks.

The gathering pipelines connecting two wells to the processing facility are complete. The company expects the building to be finished in early November, while an inlet separator is scheduled to ship from its fabrication yard during the first week of November.

The next phase will involve installing and integrating the helium recovery unit, associated piping, mechanical systems, electrical equipment and instrumentation before testing and commissioning. Avanti is working with Quantum Technology, which designed and fabricated the processing plant.

The construction update follows the U.S. Department of Energy's Oct. 23 designation of helium as a critical material under the Energy Act of 2020. The department cited helium's essential role in semiconductor manufacturing and advanced technologies, along with growing exposure to supply-chain risks.

Why it Matters

Helium is used in semiconductor manufacturing, leak detection, medical imaging, research and other applications requiring its distinctive physical properties. The Energy Department said growing global demand, limited refining capacity and lengthy permitting timelines constrain U.S. production despite the country's domestic resources.

The designation could make additional federal financing available to helium producers, according to the Associated Press. New production capacity is relevant to industrial users seeking reliable supplies of the gas for specialized manufacturing and technical applications.

Avanti's project is designed to process helium-bearing natural gas from two wells and produce helium for commercial markets. The company did not provide a revised target date for commissioning or commercial production in its Oct. 26 update.