Hydrogen is poised to become a central player in decarbonization as its adoption accelerates. There are two widely discussed types depending on production methods: green hydrogen, generated from electricity sourced from renewables, and gray hydrogen, produced from hydrocarbons. A lesser-known potential source is natural hydrogen, which accumulates deep underground. Spain is set to join Europe with the continent’s first well where such underground hydrogen could be pumped to the surface. This development could position Spain as a leading supplier of sustainable hydrogen in Europe.
Helios Aragón PTEa, a Spanish branch of the multinational BP and its partner Axion, aims to extract natural hydrogen and helium — two gases with very limited surface presence. The venture targets two underground reservoirs near Monzón and Barbastro in Aragon. The plan envisions a 900 million euro investment to commence extraction by 2028, establishing Europe’s first natural hydrogen hub and generating significant local employment, with an expected 300 direct jobs and about 1,500 indirect roles.
The term golden hydrogen marks the attention it draws in markets, given its rarity in pure form and the premium it commands. Market analysts estimate a competitive price of around 0.75 euros per kilogram, whereas green hydrogen produced from surplus renewable energy can be in the 7 to 8 euro per kilogram range. Such economics heighten investor interest in the Pyrenees discovery. The project area covers roughly 90,000 hectares, with Helios Aragón PTE holding exploration permits totalling 60,200 hectares. Natural hydrogen has not been mined in Europe or Spain historically, partly due to outdated legislation; recent activity aims to align rules with the science of hydrogen’s chemistry — clarifying it as a non-hydrocarbon in basic terms. [Citations from industry briefings]
“Initial surveys at the Monzón-1 well in May reported zero hydrocarbons, which supports treating hydrogen as a separate class under current rules”, notes Ian Munro, CEO of Helios Aragón, in a regional interview. The well reaches a depth of about 3,500 meters. A follow-up exploration well is planned for 2024 pending permissions.
Rare occurrences of hydrogen and helium in the Pyrenees add to the interest, with a small helium reserve potentially accounting for a portion of gas in the natural reservoir. Helium’s market value has surged in recent years, making it a highly sought-after gas for medical imaging and other high-tech uses. Spain currently does not produce helium at scale, though roughly a tenth of the national industry touches this gas, used in scanners and other devices.
Traditional methods for extraction
Ian Munro explains that hydrogen and helium would be extracted with time-tested oil and gas practices. He stresses that hydraulic fracturing, or fracturing rock to free resources, which is banned in parts of Europe and Aragon since 2012, would not be necessary because hydrogen and helium are light and can rise naturally without such methods. The team drew on research from 2022 that aligned with earlier 1960s data when exploring for oil in the Pyrenees. The environmental impact is described as minimal and unlikely to resemble a mine, with local economic benefits emphasized.
The current phase spans 2023 and 2024, focusing on environmental assessments, obtaining well approvals, drilling exploration wells, and defining resource scope. Investments at this stage are projected around 14 million euros, with overall plans nearing 900 million euros if legislation permits a full-scale program.
Estimations from the company’s research suggest the Pyrenean reserve could hold roughly 500 billion cubic meters of extractable gas, translating to a projected 20-year operational life.
As the underground volume is tapped, the site could also serve as a storage facility for green hydrogen produced when renewable energy availability exceeds demand. The practical challenge for green hydrogen remains its cost and the storage logistics, though advances in energy systems could help stabilize supplies in the future.
Spain’s industrial sector consumes substantial hydrogen across factories and refineries, underpinning a market valued at around 1.25 billion euros. Its uses span refinery refining to purify crude oil, ammonia and methanol production, fertilizer manufacturing, biofuels, plastics, and as a heat source replacing coal in chemical and metallurgical industries.
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Note: environmental authorities and sector analysts continue to monitor the project’s progress and regulatory alignment.