Aragon Europe aims to become the region’s first natural hydrogen producer by tapping the substantial, carbon-free gas reserves deep in Huesca. As reported last December, Helios Aragon Trade Limited Company proposed a major project in Monzón, backed by British investors, with a planned investment of 900 million euros. Spanish law currently blocks progress and a legislative change would be required to move forward.
Key figures acknowledged this during a presentation in which the CEO from the United Kingdom, Ian Munro, joined Aragon’s Vice-President and Minister of Industry, Arturo Aliaga. The event launched a project intended to transform the European energy landscape and create around 300 direct high-quality jobs plus about 1,500 indirect roles. The regional government views the proposal as a significant chance to spur development and has designated the project a regional interest initiative to streamline processing.
Both the company and the Department of Regional Government were urged to weigh requests from the Ministry of Ecological Transition to establish a clear legal framework. The path forward involves a new protection regime under Spanish mining law, with the gas nicknamed golden hydrogen. France has already moved in this direction, and officials on both sides confirmed the potential for a legal framework that would authorize exploration and production permits for natural hydrogen.
Natural hydrogen has not been extensively mined in Europe or Spain because it has historically been seen as an underutilized gas, and current legislation reflects that view. In Spanish law it is classified as a hydrocarbon, similar to petroleum, despite its distinct chemical make-up. Exploration and exploitation of hydrocarbons have been restricted since 2021 as part of the climate change and energy transition efforts.
Aliaga noted that the government has received proposals from Aragon authorities to modify mining regulations to include natural hydrogen, following the example set by France. The aim is to permit the processing of exploration and production permits for natural hydrogen, aligning regulations with those already adopted by some European peers.
There are encouraging signs regarding legislative updates. Carmen Font, a representative for Helios Aragón, indicated that other European nations such as France already account for hydrogen and helium within their mining laws, signaling momentum at the European level and paving the way for such projects through ongoing conversations with the European Commission.
A Historical Event
Officials describe the development as a historic moment, with reflections comparing it to past milestones in Aragon’s mining and energy history. A senior regional figure emphasized the region’s potential to shape Spain’s energy mix, noting that a shift away from coal toward renewables and gas could be accelerated by new discoveries and technologies. The initiative is framed as an opportunity to ensure reliable energy supply while maintaining high standards of environmental protection and safety, particularly in terms of extraction methods and operations.
The regional leadership stressed that the project would not involve hydraulic fracturing. Instead, standard drilling practices suitable for large gas plants are recommended, with the goal of minimizing environmental impact and ensuring safety. The aim is to keep Aragon at the forefront of Europe’s hydrogen strategy, contributing to a broader move to diversify energy sources and reduce dependence on imports from Southern Europe.
Aliaga highlighted that Aragon should keep the door open to becoming Europe’s central hub for hydrogen. He linked this ambition to the broader reversal of energy dependence and to infrastructure projects such as a northern energy canal that could connect Spain and France. The government asserts it has done its part by pressing for regulatory changes and engaging with the Ministry to enable the mining legislation overhaul.
3,850 Meter Research Well
Helios Aragon PTE, LTD has submitted an environmental permit for initial exploratory work at the Monzón site. The filing is in a public disclosure phase, with the Aragon Institute of Environmental Management reporting the project in the Official Bulletin of Aragon on May 10. The plan envisions the first drilling in 2024 and, if successful, commercial use of the deposit for twenty years from 2028.
Documents describe a hydrogen exploration well that will reach up to 3,850 meters in depth. The bore diameter is expected to range from 61 to 66 centimeters, and standard drilling equipment will be used. The promoters stress that hydraulic fracturing or similar methods will not be employed, though drilling mud will be used as part of conventional exploration technology. They emphasize compliance with both Spanish and Aragonese law and the absence of prohibited techniques.
Helios Aragon projects an annual production of 55,000 tonnes of hydrogen starting in 2028, representing a significant share of the national market from Monzón’s initial phase. When the underground reservoir is depleted, proponents propose safe storage solutions that could maintain supply levels. The gas is labeled golden hydrogen because pure natural hydrogen is rare; it is usually derived from other substances. Market analysts project a very competitive price for this green hydrogen, particularly when produced with excess renewable energy, with typical figures well below the cost of conventional hydrogen in some scenarios.
Headquarters and Long Energy Experience in Singapore
In August 2018 the company sought permits to explore natural hydrogen and helium, with approvals granted by the Government of Aragon in February 2020. Site testing and on-site examinations reported high readings at locations in Barbastro and Monzón. A request for administrative prioritization of the project was filed in February by a Malaga-based lawyer on behalf of Helios Aragón Exploration SL. The parent company, registered in Madrid since March 2018, lists its headquarters in Singapore and includes subsidiaries in Poland and the United Kingdom. The management team is described as seasoned professionals from major energy players such as Shell, ExxonMobil, and BP, which the DGA has cited as part of the regional investment profile.
Project History
Historical drilling by Endeavour in the 1960s under the national oil program searched for hydrocarbons on Spanish soil. The Monzón-1 survey, located about a kilometer southeast of the town center, did not confirm oil but did indicate hydrogen’s presence in two zones, though the indicators were indirect since the primary aim was oil exploration. It has long been thought that free hydrogen deposits on Earth are scarce and highly reactive, but recent studies suggest natural hydrogen could exist under certain geological conditions. This has spurred renewed interest in searching for hydrogen reservoirs near Monzón.
Against this backdrop, Helios Aragon is considering a new exploration program to confirm hydrogen presence and characterize the prospective reservoir. The research would focus on the reservoir rock, sealing properties, and potential source regions. The project documentation states that the chosen research methods will not require actions that involve fracturing or fragmentation, underscoring a commitment to traditional, low-impact exploration techniques.