Soaring Costs of Helium Force End-Users to Take a Closer Look at Their Supply Systems

Users of helium have grown accustomed to hearing about the capacity limits of helium and the effects on their business from a molecule perspective. This article examines the value of helium from the equipment user’s perspective, and documents a case history that illustrates how the system of one customer was evaluated and upgraded, resulting in a significant reduction in product loss. Also illustrated is how optimization increased profitability so that the cost of the upgrade was recouped within a relatively short time.

Price Increases Spur Action

With the price of helium hovering near the $60 per cubic foot range, the users of helium have experienced increasing concerns as they attempt to manage the gyrations in supply and demand for this important and necessary global resource.

Just last year, Specialty Gas Report touched on this issue with an article that profiled the painful effects of a “Perfect Storm,” an occurrence that demonstrates the latest helium supply shortage (SGR, second quarter 2006, page 53). Unfortunately for the users of helium, the “Perfect Storm” described in that article is becoming more of an every-day occurrence rather than an isolated incident in the business of helium supply and its application.

In an effort to ensure a stable supply and to reduce costs, the major suppliers of helium over the course of the last twelve months, have imposed unprecedented price increases (as high as 40 percent in some cases for liquid helium). As a result, their customers have concluded that they can no longer ignore the need to upgrade their maintenance procedures and to upgrade their helium handling systems. The need to review their entire helium supply system and to find ways to optimize their operation.

Optimizing the Helium System

Helium is a most elusive and costly molecule, and it pays to retain and recover as much of the residual helium in a system as possible. Since many disciplines are required to engineer a helium system, the question that users face is how to find the right system at the right price to justify the equipment upgrade?

Helium users are taking notice of the professional design experience of HeliumOneSource and using the site as a one-stop shopping approach to complete helium equipment optimization and upgrade.

A Success Story

When Gas Technology and Services Inc. (GTS Inc.) decided to replace its faltering helium blower at its Fairless Hill, Pa., facility, its engineers turned to HeliumOneSource.

GTS is a large helium distributor and regularly fills dewars and cylinders from a liquid helium container. That company had a flash recovery system in use; however, as GTS grew, some chronic problems crept into its daily operation that created opportunities for cost savings and the need for streamlined operations. HeliumOneSource personnel spent one day with GTS personnel. All helium-related operations were reviewed, and areas that required an upgrade were identified. It was obvious that significant savings could be achieved.

GTS agreed that efficiencies would be achieved by replacing its existing, maintenance intensive, and undersized helium blower with properly sized equipment that would be tailored to their existing operation.

The proposed equipment would also accommodate an operating envelope for future growth.

To further optimize their system, we recommended that the existing vacuum jacketed piping be replaced. This equipment pre-cooled the liquid helium dewars being filled. Also, a modification to the existing helium moisture and lubricant removal system was proposed. The resulting system and its installation was a complete success, according to Al Coulter, Vice President of GTS Operations.

Membrane Based Impure Recovery System

When it comes to helium, users need to understand the different types of systems that are available and the benefits of each, with a focus on what will result in the best return on investment.

Typical helium processors can save thousands of dollars each year in recovering helium from their operations, with a very short project payback period.

The optimum solution depends to a great extent on whether the helium is pure or if it contains contaminants.

The process steps are simple and include isolating, collecting, and processing the spent helium molecule used during the normal course of system operation or during transfill to customers’ containers.

The ideal system takes into account the various use points of helium and considers the pressure, flow rate, and volume of the streams. The typical recovery operation involves isolating and capturing the helium molecule from venting dewars, experimental devices, and purging or depressurization operations.

To facilitate the collection process, each helium stream is piped to the existing helium compressor. An optimum design must include an evaluation of the compressor to determine if the recovered helium stream is at the correct suction pressure and temperature, and if the compressor has sufficient capacity to re-ingest the additional volume that will be handled.

Once the compression process is completed, the helium is stored into high pressure cylinders. These cylinders are then available for resale to the helium supplier as impure helium. Also, if economically justifiable, the product can be compressed and purified for the users own re-use.

If the recovered helium is contaminated (e.g., with moisture or air), the ideal solution consists of capturing the helium in a sealed, almost totally impermeable membrane bag. This bag serves as a depository, and as the bag fills and expands, a recovery compressor is automatically activated to empty the bag. The bag has a very slow diffusion rate and adds very little air contamination, unless the helium is allowed to reside in the bag for extended periods.

Many companies are looking for a complete package to optimize their dewar filling needs. For example, a Midwest distributor recently purchased a complete dewar filling system that included a blower, warm up exchanger, spare transfer and vacuum jacket assemblies, and a dewar filling scale with electronic output.

HeliumOne Source designed a system, for this distributor, which collects the flash gas from the dewar and warms the gas in a heat exchanger prior to boosting the gas in a low pressure blower to the existing compressor. This system maintains the compressor inlet pressure during the dewar filling process. A constant filling pressure prevents unnecessary system cycling, which would eventually lead to premature maintenance and operational downtime.

In addition, the Midwest distributor’s system includes two remotely operated valves on the compressor discharge to isolate the impure and pure helium into two separate cylinder racks. This ensures product isolation at all times and protects the integrity of the saleable helium.

Helium Purifier

Once a helium handling system has isolated the impure helium, the next step in chain optimization is to purify the helium, to remove contaminants, using a helium purifier. The helium purifier is designed for simple operation and minimal maintenance. It removes the air typically found in a helium gas stream—after compression and before filling into cylinders or tube trailers.

HeliumOneSource offers a compact, high performance, yet inexpensive purifier that handles flow rates of 7,000 SCFH (200 m3). Also, it removes air contaminants to less than one ppm (v/v) by adsorption, using silica gel. The use of silica gel eliminates any hazard associated with activated carbon at a temperature of approximately minus 320F.

The only consumable or utility of consequence used in the HeliumOneSource purifier design is a small quantity of liquid nitrogen. This nitrogen traps the contaminants and can be supplied from a liquid tank or dewar, permitting unattended operation. The purifier regenerates by a very simple process step that minimizes helium loss or the need to circulate any regeneration gas.

The Future of Helium

The production of helium is forecast to increase as plants from Skikda, Algeria, and Quatar approach full rated operation within the next few years. It is certain that helium utilization capacity will remain at very high levels for the foreseeable future. This means that helium users will remain vulnerable to increased costs and supply disruption.

Helium users need to set up an annual review of their systems and operations with the purpose of answering the question: Are we doing enough to save and optimize our helium molecule?

Efficient helium supply chain management is possible by justifying the use of the latest technology, backed by operation and design expertise.

Jim West Sr. and Richard Lemak, two veteran helium industry experts, have conceived and launched HeliumOneSource. com(http://www.heliumonesource.com – aservice that offers end-users easy access to their 50 years’ combined experience with helium technology and markets. With the collaboration of more than 30 carefully selected equipment suppliers, HeliumOneSource has helped end-users to optimize their systems; theirs is the only buying web site completely dedicated to supplying only helium equipment and systems. James E. West and Richard J. Lemak can be reached at jim@heliumonesource. com and rick@heliumonesource.com

Specialty Gas Report FOURTH QUARTER 2007 //