Asia Pacific Captive Petroleum Refinery Hydrogen Generation Market - By Process (Steam Reformer, Electrolysis) & Forecast, 2024 – 2032

Asia Pacific Captive Petroleum Refinery Hydrogen Generation Market Size

Asia Pacific captive petroleum refinery hydrogen generation market size was valued USD 18.6 billion in 2023 and is anticipated to grow at a CAGR of 6.7% between 2024 and 2032. It refers to on-site generation of hydrogen specifically for use within a petroleum refinery.
 

Hydrogen is produced through processes such as steam methane reforming or electrolysis to meet the refinery's requirements for various operations, including desulfurization and hydrocracking. This method enables refineries to generate hydrogen independently, reducing reliance on external suppliers and ensuring a consistent supply for their processes.

Rising pressure on refiners to meet stringent environmental regulations aimed at reducing carbon emissions will augment on-site clean fuel process adoption. Increasing process demand to reduce clean fuel production costs by eliminating transportation costs and minimizing the impact of fluctuating market prices will foster industry growth.
 

Increasing investments in developing advanced technology, particularly in electrolysis and steam methane reforming (SMR) for enhancing the feasibility of captive hydrogen generation will bolster market growth. Additionally, these innovations are making the process more efficient and economical allowing refineries to optimize their hydrogen production processes, further incentivizing captive generation.
 

Asia Pacific Captive Petroleum Refinery Hydrogen Generation Market Trends

Increasing penetration of renewable energy sources in the region's energy mix is facilitating the growth of green hydrogen production, encouraging refineries to explore the use of solar and wind energy for electrolysis to produce hydrogen sustainably leading to strengthening business outlook. Furthermore, companies are increasingly adopting captive clean energy production to lower overall production costs and utilize byproducts from other refining processes as feedstock. This cost advantage is crucial in an environment where businesses face pressure to reduce operational expenses while maintaining product quality and regulatory compliance.
 

Asia Pacific Captive Petroleum Refinery Hydrogen Generation Market Analysis

Based on process, the Asia Pacific captive petroleum refinery hydrogen generation market is segmented into electrolysis, steam reformer, and others. Electrolysis is projected to reach more than USD 3 billion by 2032. Rising advancements in electrolysis technology to improve efficiency and lower operational costs for clean energy production will stimulate process adoption. Increasing shift towards producing low-carbon fuels coupled with rising government incentives, research funding, and investment in hydrogen infrastructure will encourage process adoption for refinery applications. Furthermore, the emergence of innovative business models, such as hydrogen-as-a-service, will facilitate advanced process adoption. This model allows refineries to benefit from hydrogen generation while minimizing financial risk and maintaining operational flexibility leading to foster business statistics.
 

China captive petroleum refinery hydrogen generation market is anticipated to grow over USD 13 billion by 2032. Rising shift from coal-dependent processes to cleaner alternatives as a part of a broader industrial upgrading strategy will improve process penetration by enabling refineries to produce low-carbon fuels and meet stricter environmental regulations. Increasing domestic demand for clean energy, driven by urbanization and industrial growth will foster process adoption, allowing refineries to produce hydrogen for hydrotreating and hydrocracking processes, helping to produce cleaner transportation fuels.
 

In the U.S. rising focus on energy independence and security will augment on-site clean fuel production to mitigate risks associated with global supply chain disruptions and volatile market prices. Additionally, increasingly stringent fuel and emission standards, such as the EPA's Tier 3 regulations mandating the production of ultra-low-sulfur fuels, will drive demand for hydrogen in refinery operations. This push for compliance encourages refineries to adopt efficient hydrogen generation processes to meet these regulatory requirements reliably and cost-effectively leading to uplift product adoption.
 

Asia Pacific Captive Petroleum Refinery Hydrogen Generation Market Share

Eminent players are focusing on integrating renewable energy sources into their hydrogen production processes. Utilizing wind, solar, or hydroelectric power for electrolysis not only reduces carbon emissions but also aligns with global sustainability goals. Key players investing in market development and education initiatives to raise awareness about the benefits of captive hydrogen generation. Companies are engaging with stakeholders, including government entities, industry associations, and end-users, to promote the advantages of hydrogen in refining and beyond.
 

Asia Pacific Captive Petroleum Refinery Hydrogen Generation Market Companies

Eminent players operating in the industry are:

• Air Products and Chemicals
• Air Liquide
• BASF
• Chennai Petroleum Corporation
• Emerson
• Fluor Corporation
• GAIL Limited
• Mangalore Refinery and Petrochemicals
• Next Hydrogen
• Nel Hydrogen
• Technip Energies
   

Asia Pacific Captive Petroleum Refinery Hydrogen Generation Industry News

• In July 2024, Tecnimont and NEXTCHEM have launched India’s first green hydrogen plant for GAIL. This facility will generate 4.3 tons of green hydrogen daily using a 10-MW electrolysis unit, making GAIL the pioneer in MW-scale green hydrogen production in the country.
   
• In July 2024, MRPL intends to consistently generate green hydrogen for internal use through water electrolysis powered by renewable energy. This green hydrogen will be mixed with the hydrogen currently produced at the refinery for in-house consumption.
   

Asia Pacific captive petroleum refinery hydrogen generation market research report includes an in-depth coverage of the industry with estimates & forecast in terms of revenue in “(USD Billion)” from 2021 to 2032, for the following segments:

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Market, By Process

• Steam reformer
• Electrolysis
• Others

The above information has been provided for the following countries:

• China
• India
• Japan