Small modular reactors (SMRs) could become a significant emerging market for helium as developers advance designs that use the gas as a reactor coolant. MIT Technology Review this week profiled X-energy, whose proposed Xe-100 would use helium to cool its core and transfer heat at higher temperatures than conventional pressurized-water reactors. The design is intended to produce hotter steam, potentially improving electricity-generation efficiency and supporting a wider range of industrial processes.
The basic heat-transfer process is familiar:
- Conventional pressurized-water reactor: Pressurized water carries heat from the core to a steam generator, where it transfers heat to a secondary water circuit.
- Xe-100: Pressurized helium would carry heat from the core to a steam generator, where it would transfer heat to a secondary water circuit.
In both designs, the primary coolant recirculates, and the secondary steam can drive a turbine generator. The Xe-100’s distinguishing features include its inert, single-phase helium coolant, TRISO fuel and graphite-moderated pebble-bed core, which are designed for higher operating temperatures.
The Xe-100 is designed to produce steam at approximately 565°C, compared with roughly 275-285°C for a typical pressurized-water reactor’s secondary steam output. It is anticipated that this higher temperature could support a broader range of industrial heat applications. Helium is well suited to the design because it is chemically inert and remains a single-phase gas under reactor conditions.
For industry, the opportunity extends beyond electricity generation. Many factories burn fossil fuels to produce process heat. If commercially deployed, reactors such as the Xe-100 could displace a portion of that fossil fuel by supplying high-temperature steam for suitable manufacturing processes, electricity, or both.
The modular format is intended to provide deployment flexibility. Each Xe-100 is designed to generate approximately 80 MWe, or 200 MWt, and units can be combined; X-energy’s standard four-unit configuration is approximately 320 MWe. Proposed projects include a four-unit installation serving Dow’s Seadrift industrial site in Texas and a four-unit energy Northwest project supported by Amazon, both targeting the 2030s.
Helium-cooled reactors are not a new concept. Farrington Daniels led pioneering work on such a reactor in the early to mid-1940’s at the Manhattan Project’s Clinton Engineering Works in Oak Ridge. His design was not built, but later helium-cooled reactors advanced the technology on which X-energy is now building. Its Xe-100 modular design is intended to supply electricity, industrial process heat, or a combination of the two.
If these designs achieve commercial deployment, their high-temperature steam and cogeneration capability could improve energy efficiency at suitable industrial sites. Wider adoption would create helium demand, with its scale determined by the number of reactors built, their initial helium requirements and subsequent replenishment needs.
Any new coolant demand reinforces the case for resilient and diversified helium supply. EnterpriseAM reported on 7 October that helium supply was recovering more slowly than crude oil following disruption in the Gulf, with Asian import patterns shifting materially during the first half of 2026. Helium is listed as a critical raw material in the EU and a critical mineral in Canada, reflecting its economic importance and exposure to supply risk. If helium-dependent technologies reactor designs advance, developers will need reliable sources for commercial deployment.
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Disclaimer
This article contains information based on current market conditions and publicly available data. It does not constitute financial advice, and investors should conduct their own due diligence before making any investment decisions.
Marc Farrington
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