Helios has submitted an Ordinary environmental application for the Monzón-2 well to the Government of Aragón. The well will be drilled to a total depth of 4000m to appraise the natural hydrogen reserve which was discovered by the Monzón-1 exploration well in the 1960’s. The estimated duration of site preparation, drilling, testing and site restoration is 6 months.

The Monzón Natural Hydrogen Project, declared of “regional significance” by the Government of Aragón in May 2023, will require an investment of up to €900 million and is forecast to generate 300 direct and over 1500 indirect employment opportunities for the region. After the hydrogen has been produced from the field, a second phase of the project will involve the storage of green hydrogen.

Natural hydrogen has the potential to revolutionise the clean energy transition by providing the lowest cost of supply with negligible emissions. With such competitively priced hydrogen, produced 24/7 using existing technology, it is expected that industries will be motivated to secure offtake for local use. The hydrogen can be used as feedstock, supplying products as diverse as fuel cells to fertilizer, or a direct energy source to replace fossil fuels to meet decarbonization mandates.

The Monzón reservoir is also expected to contain helium, which is deemed a “critical raw material” by the European Union. If the drilling proves up helium, which is often found in the subsurface in association with hydrogen, then this will be Spain’s first production of a gas which is used in many essential medical, technological and research industries.

Country Manager and Project Director, Luis Carmona commented:

“The Ordinary submission for the Monzón-2 well represents the highest level of the environmental approvals process. Such an approach by the Aragón authorities applies for Spain’s first well targeting natural hydrogen together with any other associated gases. The Ordinary application has been prepared over several months taking into account the Simplified evaluation procedure.

We would like to acknowledge the support that the project has received from the Government of Aragón and agencies since we commenced activities in Spain in 2018.

The Company is at the cusp of being able to commence development activities for the cleanest and lowest cost energy source. Monzón-2 will likely be a catalyst for the acceleration of exploration activities throughout the European Union, where recoverable reserves are expected to be prolific based upon the underlying geology and recorded hydrogen.

CEO, Ian Munro, added:

“The Company remains focused on delivering Europe’s first natural hydrogen production before the end of the decade. We look forward to working closely with stakeholders to progress a project that will contribute significantly to the local and regional economy, enhancing energy security and supporting the transition to a lower carbon future with a minimal environmental footprint.

Whilst Spain remains the key focus for the Company, we continue to leverage learning’s in Aragón to our exploration operations, including in Poland, the UK, Oman, the Philippines, Indonesia and Australia”.