Helios Aragon is developing Europe’s first natural hydrogen production project in northern Spain and was designated a “project of regional significance” by the Government of Aragon in May 2023.

The Monzon Field, discovered in the 1960’s, recorded high gas shows of pure hydrogen at a depth of 3,600m in a good quality sandstone reservoir overlain by a thick salt section. At the time, it was noted as a geological curiosity and the well was abandoned. The field structure is defined by modern 2D seismic and high-density gravity data. In 2022, an extensive surface geochemical survey was undertaken which recorded not only high levels of hydrogen above the field and major faults, but also helium which is deemed a “critical raw material” by the EU.

The Monzon-2 appraisal well, to be drilled in the second half of 2024 at a cost of €12 million, will be the first of its kind in Europe – a well drilled to produce natural hydrogen. 

The most likely recoverable volume of hydrogen in the Monzon Field is 1.1 million tonnes. There are several look-alike structures to the Monzon Field identifiable on seismic and gravity data which are also expected contain natural hydrogen, with total recoverable volumes in the Helios Aragon permits estimated at 5 to 10 million tonnes, and perhaps over 100 million tonnes in the province of Aragon.

The reserves would be produced over 20-30 years from early 2029 at a rate to meet local industrial demand, between 55,000 tonnes to 70,000 tonnes per annum at plateau. The break-even cost of hydrogen supply from the €800 million project is less than €1/kg and, unlike green hydrogen, does not require storage or water. The project will utilise existing technology, equipment and skills to produce 24/7, supplementing supply when green hydrogen is unable to be produced. Development concepts for the facilities, which have a very small areal footprint when compared to wind and solar, have been fully costed and designed to accommodate a range of hydrogen and helium in the field. It is expected that the project would create 300 direct and over 1,500 indirect employment opportunities.

Commercial success in late 2024 can revolutionise the clean energy transition by sourcing the cleanest and lowest cost hydrogen which can be utilised locally or distributed throughout Spain and Europe. In doing so, Helios Aragon can help drive the establishment of a hydrogen production hub which can later be used for the safe storage of locally manufactured green hydrogen.