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Insight - Helium and Europe's Critical Raw Materials Act

JUL 2024

The Critical Raw Materials Act (CRMA) came into force in the European Union on 23 May 2024.  This insight provides a snapshot of the CRMA and how it can support your helium project. 
 

The CRMA – Introduced by EU Regulation 2024/1252, the CRMA establishes a “framework for ensuring a secure and sustainable supply of critical raw materials” that are essential to the EU’s economy.

 
The final version of the CRMA provides broad support including funding, expedited permitting, and a system for offtakes. As an EU regulation, it is binding across all EU member states.


A ‘critical material’?  The CRMA includes a list of 34 ‘critical raw materials’ which are “essential to the EU’s strategic interests”. The list is based on certain criteria, including the economic importance of the materials, their supply risk, and the difficulty in finding substitutes. Helium is included in this list.


What is a ‘Strategic Project’?  To receive support under the CRMA, a helium project must first be classified as a ‘Strategic Project’.  In this regard, for a helium project to obtain this status, it must be shown that the project “will make a meaningful contribution to the EU’s supply of strategic raw materials”; will be implemented sustainably; and has a classification under the ‘UN Framework Classification for Resources’. 


What support? A Strategic Project will benefit from substantial support that includes (i) being considered as “having an overriding public interest” in the host nation, (ii) an expedited permitting process which shall not exceed 24 months for extraction, and 12 months for processing, (iii) access to EU financial support, through EU development financial institutions and national promotional banks, and (iv) access to an EU facilitated offtake process.


Projects outside EU? - The CRMA clarifies that projects outside of the EU can obtain support and funding once the project meets the same prescribed standards as EU based projects. Specific criteria will vary depending on the project location, and we can advise further on a project-by-project basis. 


How to apply? - The EU Commission has opened the first call for applications (for classification as a ‘Strategic Project’) and this window will close on 22 August 2024.  We are assisting in this process. Applications will be checked for compliance with the CRMA, before undergoing a technical review during September and October 2024. 


Other legislation – the CRMA must be read in line with the Raw Materials Initiative and other EU legislation including, without limitation, the (i) Conflict Minerals Regulation requiring supply chain due diligence; and (ii) Circular Economy Action Plan.


Does my project qualify? – For advice in relation to critical mineral support and funding, under the CRMA and otherwise, please contact Edelgas to organize a review of your project and the options available.


Edelgas Group advises on the sourcing, supply, and pricing of helium and other rare gases, and related project development and deal structuring. Please email our team at pfinan@edelgasgroup.com or info@edelgasgroup.com


This insight does not constitute legal advice and is subject to input from a lawyer.
 

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