Hydrogen is positioned to be a central driver of decarbonization in the near term, with rapid advancements expected. Depending on its source, hydrogen is categorized mainly as green, produced with electricity from renewable sources, or gray, derived from hydrocarbons. A less common origin is natural hydrogen, which accumulates deep underground. Spain is on track to host Europe’s first well sourcing such underground hydrogen, potentially transforming the country into a leading supplier of sustainable hydrogen in Europe.
Helios Aragón PTEa, the Spanish subsidiary of the multinational oil company BP and its partner Axion, plans to extract natural hydrogen and helium, two gases with very limited surface presence. Two underground reservoirs lie near Monzón and Barbastro in Aragón. The venture envisions a 900 million euro investment to begin extraction by 2028, aiming to establish Europe’s first natural hydrogen hub and creating approximately 300 direct, high-quality jobs and 1,500 indirect roles.
Golden hydrogen is prized for its rarity in pure form, often produced from other substances. Energy analysts project a competitive market price around 0.75 euros per kilogram, while green hydrogen produced from excess renewable energy typically ranges from 7 to 8 euros per kilogram.
Thus, the discovery of natural hydrogen in the Pyrenees has attracted keen investor interest. The reserves span roughly 90,000 hectares, a footprint that includes Helios Aragón PTE and its exploration permits totaling more than 60,000 hectares. Natural hydrogen has rarely been mined in Europe or Spain because it was historically viewed as a minor gas, which helps explain the inadequate regulatory framework. Legally, hydrogen is not a hydrocarbon (hydrogen alone) despite being treated differently in the mining code; proponents argue it should be exempt from hydrocarbon legislation.
“Some May surveys of the Monzón-1 well showed zero hydrocarbons, so it makes sense to distinguish them from hydrocarbon legislation,” explained Ian Munro, CEO of Helios Aragón, in an interview with El Periódico de Aragón. The well reaches a depth of about 3,500 meters. For 2024, a second exploratory well could be pursued if permits are obtained.
Alongside hydrogen, a small helium reserve in the Pyrenees has been identified, potentially accounting for up to 4% of the total gas found in this natural reservoir. Helium remains highly coveted in the market, with prices rising dramatically in recent years, and it is essential for sectors such as medical imaging and electronics production. Spain currently has limited helium production, though a portion of the national industry relates to this gas for scanners and related applications.
traditional extraction methods
Ian Munro notes that hydrogen and helium will be extracted using conventional oil and gas techniques. He stresses that hydraulic fracturing, or “fracking,” which is banned in Europe and Aragón since 2012, will not be used as part of this project. Hydrogen and helium, being lighter gases, are described as rising naturally without extra assistance. The company cites prior research from May 2022 confirming strong hydrogen and helium readings initially identified in 1963 during oil exploration in the Pyrenees. Environmental impact is anticipated to be minimal, with local economic benefits guiding the project’s operations.
The program focuses on phases through 2023 and 2024, including environmental assessments, well approvals, exploratory drilling, and resource scope confirmation. An investment of around 14 million euros is planned at this stage, with total project costs nearing 900 million euros should the regulatory framework permit.
Industry assessments estimate that the Pyrenean reserve could hold about 500 billion cubic meters of recoverable gas, translating to a twenty-year operational lifespan for the project. The headline potential includes hydrogen storage for green hydrogen produced from renewable surplus energy, though maintaining price competitiveness and storage logistics represents a key challenge.
Spain’s industrial sector consumes substantial hydrogen, with the fuel used across refineries and chemical production. The hydrogen economy supports processes for refining crude oil, producing ammonia, methanol, fertilizers, biofuels, or replacing coal in various industrial applications. The sector’s demand underscores hydrogen’s strategic importance to the broader economy.
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Regulatory considerations for the project emphasize alignment with environmental standards and national energy strategies. Stakeholders continue to monitor policy developments as Spain positions itself within the European hydrogen landscape.