Aragón, Spain
Monzón
Proven discovery with certified contingent resources in the Bunter sandstone. Appraisal well to confirm flow rates in 2H 2027. First production 2029.
Monzón
The Monzón Project
Helios is commercialising its flagship Spanish natural hydrogen and helium project by 2029 and has a pipeline of high-value global opportunities.
Recoverable hydrogen1.1 Mt
Project value$2bn
First production2029
Field life24 yrs
Portfolio
One flagship, and a pipeline behind it.
Helios has a pipeline of high-value global opportunities.
Strategy
Securing high-potential growth opportunities with low commitments.
- 01
Hydrogen and helium in sandstone reservoirs, proven by historical drilling
- 02
Close to market, with near-term commercialisation options
- 03
Supportive stakeholders
The company
Europe's leading natural hydrogen and helium exploration company
- World's only certified contingent hydrogen resource
- Over one billion dollars project value from hydrogen with one billion dollars upside from helium
- Declared a Project of Regional Significance - Government of Aragon declaration, May 2023
- Developed with proven technology
- >150MW of available off-grid power
- Helios has a pipeline of high-value global opportunities.
The management
Proven track record of major resource project delivery
- Shell, BP, ExxonMobil, Woodside, Oil Search, ARCO, Repsol, InterOil, Serica Energy
The discovery well, Monzón-1
Flowed pure hydrogen to surface and was regarded as a geological curiosity
- The Monzón structure was identified as a large NW-SE trending gravity high and drilled in 1963 targeting hydrocarbons
- Drilled significantly overbalanced, with major mud losses as the well encountered a Triassic gas-filled permeable sandstone at 3,600m
- 25% of the total mud return volume at surface was gas
- The gas was flared and recorded as pure hydrogen using the standard well-site gas analysis apparatus
The Monzón reservoir
Prolific hydrocarbon producer across north-west Europe
- Reservoir 55m+, net pay 44m, average porosity in pay 10%, average gas saturation 64%
- Reservoirs of equivalent Triassic age and depositional environment can have recovery factors above 90%
- Morecambe Bay, one of the largest UK gas accumulations, has recovered 5.2 Tcf; Hewett in the southern North Sea has produced 1.2 Tcf
The hydrogen system
All play elements required for a large natural hydrogen accumulation are proven
- Seal: 1,800m of salt and shales
- Reservoir: high-quality sandstone with 100% hydrogen
- Trap: anticlinal structure
- Migration: faults carry hydrogen from the lower crust and upper mantle
- Depth: 3.5 km provides sufficient pressure to trap a large volume
The resource classification
The Monzón Field meets all criteria for a contingent resource
- Commerciality remains the key contingency to move to reserves
- "Contingent resources, development unclarified" recognises that project scope is broad and uncertainties will be resolved through the planned appraisal programme
| PRMS criteria for contingent resources | Item | Monzón Field |
|---|---|---|
| Well penetration | Monzón-1 (1963) | |
| Defined structure | Gravity and 2D seismic confirm structural closure around the well | |
| Established recoverable volume | Wireline resistivity confirms gas-saturated section; 100% hydrogen at surface; mud losses confirm porous and permeable reservoir | |
| Regional analogues | Hydrocarbon production from the Bunter sandstone across Europe | |
| Appraisal project | Monzón-2 appraisal well planned for 2H 2027 |
The resource volume
The world's only certified contingent hydrogen resource
- Helios-calculated recoverable hydrogen is 476 bcf (1.1 million tonnes)
- Certified in-place volumes are identical to Helios; certified recoverable hydrogen is 232 bcf on a more conservative concentration (60% vs 100%) and recovery factor (65% vs 80%)
| Item | Helios most likely | Certified contingent | Certified prospective | Certified total |
|---|---|---|---|---|
| Gas initially in place, bcf | 595 | 241 | 356 | 597 |
| Recovery factor | 80% | 65% | 65% | |
| Gross recoverable gas, bcf | 476 | 157 | 231 | 387 |
| Hydrogen gas | 100% | 80% | 50% | |
| Net recoverable hydrogen, bcf | 476 | 125 | 107 | 232 |
The resource upside
Multiple structures have been mapped in the permits
- 5 to 10 million tonnes of additional recoverable volumes from six structures in the permits
- Two additional permits applied for 20 km south-west of Monzón-1
The development
Requires only proven technology with well-constrained cost and schedule
- Facilities throughput of 80 mmscf/day from four production wells
- Two additional drilling campaigns of four wells each, twelve wells in total, to deliver a 12-year production plateau
- Gas processing is modelled from pure hydrogen to mixes with nitrogen and helium
- Processing facility close to the wells on 200m by 100m (5 acres)
The market
Scalable off-grid energy source provides multiple offtake scenarios
- First production of clean, reliable hydrogen with a very low facility footprint in 2029
- >150MW of available off-grid power
- Hydrogen combustion generates 250 Olympic swimming pools of water per annum.
- Alternatively, hydrogen can be used at the nearby Monzón industrial site as feedstock or to replace natural gas
- Some or all production can be exported through existing natural gas transmission or the planned EU hydrogen network
- Helium would be transported by road or rail to high-tech and medical industries regionally
The stakeholders
Regional government and local community are supportive
- Declared a Project of Regional Significance - Government of Aragon declaration, May 2023
- The Monzón mayor, businesses and local population are supportive; no major objections have been lodged
- Monzón is the industrial and economic hub of Cinca Medio: industry, metalworking and chemical production since the 1920s
- Under the Hydrocarbons Act the Monzón commune would receive a 5% royalty on gross revenue
- Potential for >500 local employees
The economics
Hydrogen-only development
| Recoverable | 476 bcf (1.1 million tonnes) |
|---|---|
| First production | 2029 |
| Peak production | 80 mmscf/d (69,000 tonnes pa) |
| Field life | 24 years |
| IRR | 79% |
| Payback | 1 year |
| Break-even | $0.5/kg |
| Recoverable | 466 bcf hydrogen (98%), 10 bcf helium (2%) |
|---|---|
| IRR | 57% |
| Payback | 2 years |
80
mmscf/day
12 years at plateau
Four production wells, 80 mmscf a day
The way forward
Environmental approval is the final deliverable ahead of the appraisal well
- Environmental approval for the appraisal well (including testing) expected in Q4 2026
- Monzón-2 sits next to the discovery well, so stratigraphy and pressures are well constrained
- Monzón-2 will be drilled in 2H 2027 to determine hydrogen flow rates and whether helium is present
Now
Certified contingent resources
Letter of Intent with the Government of Aragon, August 2021. Declared a Project of Regional Significance - Government of Aragon, May 2023.
Q4 2026
Environmental approval
For the appraisal well including testing.
2H 2027
Monzón-2 appraisal well
Flow rates, and whether helium is present.
2029
First production
>150MW of available off-grid power.
Pure hydrogen at 3,600m in sandstone beneath 1,800m of salt, recorded by a 1963 oil well and abandoned as a curiosity.
No. Drilling, separation and compression use proven, existing equipment. The novelty is the resource, not the plant.
Recorded above the field in the 2022 survey. An EU critical raw material. Over one billion dollars project value from hydrogen with one billion dollars upside from helium. Helium will be confirmed by Monzón-2.