Helios today announced the formal commencement of the Monzón Natural Hydrogen Project at an official press conference organised by the Government of Aragón. The project achieved a significant milestone last month, in being designated “of regional significance” by the Parliament and is on track to deliver Europe’s first natural hydrogen production.

Helios is planning to produce naturally occurring hydrogen which was discovered by drilling near the town of Monzón in the 1960s. The first well will be drilled in 2024 at a cost of 12 million euros with total project investment expected to be around 900 million euros and first production in 2028. After the hydrogen field has been depleted, Phase II of the project will involve the secure storage of green hydrogen. The Company has also mapped several look-alike structures near the Monzón Field which are expected to contain commercial volumes.

Natural hydrogen is widely regarded as having the lowest cost of supply and has negligible emissions. With such competitively priced hydrogen, produced 24/7 by existing technology, it is expected that industries will be motivated to secure offtake for local use. The hydrogen can be used as feedstock, ranging from products as varied as fuel cells to fertilizer, or a direct energy source to replace fossil fuels to meet decarbonization mandates. The project is forecast to generate 300 direct and over 1,500 indirect new employment opportunities for the region.

The Monzón reservoir is also expected to contain helium, which is deemed a “critical raw material” by the European Union. If the drilling successfully 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.

CEO, Ian Munro in Zaragoza for the event, commented that:

“We are delighted to announce the formal launch after being designated a project of regional significance. Such a vote of confidence in the project and the Helios vision will see the first well drilled in the second-half of next year and first production by 2028.  I would like to acknowledge the tremendous support that the project has received from the Government of Aragón since we commenced activities in Spain in 2018.

We are seeing significant interest in the project, both from potential partners and offtakers, and the support of the Government and various departments has been instrumental in demonstrating the commitment to move forward with investments in the near term. We look forward to working closely with stakeholders to deliver a project that will contribute significantly to the local and regional economy.

The Helios vision is to produce the lowest cost hydrogen to be utilised locally in Spain, or distributed throughout Europe to enhance energy security and support the broader transition to a lower carbon future. We have taken the learning’s in Spain to our operations in Poland and look forward to opening new affiliates in Germany, Hungary and the UK over the next 12 months”.