Asia Pacific Petroleum Refining Hydrogen Generation Market Size - By Delivery Mode (Captive and Merchant), By Process (Steam Reformer, Electrolysis), Country Outlook & Forecast, 2024 – 2032

Asia Pacific Petroleum Refining Hydrogen Generation Market Size

Asia Pacific Petroleum Refining Hydrogen Generation Market was valued at USD 21.5 billion in 2023 and is estimated to grow at a CAGR of 6.9% from 2024 to 2032. This process involves generating hydrogen primarily for petroleum refinery applications, including hydrocracking and desulfurization. The process aims to decompose heavy hydrocarbons, eliminate sulfur compounds, and elevate the quality of the resulting fuels. The hydrogen serves as a vital input, boosting both the efficiency and environmental standards of contemporary refineries.
 

Rising regulatory pressure on refineries to combat climate change and reduce pollution will propel product adoption for clean energy to combat climate change and reduce pollution. Growing trend among refineries to integrate sustainable practices into their operations, particularly for hydrocracking and desulfurization to produce cleaner fuels will augment the product adoption. This shift is supported by investments in renewable energy sources for hydrogen production, such as electrolysis powered by solar or wind energy.
 

Increasing investments in hydrogen generation by oil and gas companies to enhance their long term sustainability and regulatory compliance strategies will significantly transform the industry landscape. Additionally, improving government initiatives providing incentives and subsidies to promote hydrogen production in the petroleum refining sector will further stimulate the market growth. Rising focus on improving domestic hydrogen production capabilities, aiming to reduce reliance on imported crude oil and refined products will accelerate the product adoption.
 

Asia Pacific Petroleum Refining Hydrogen Generation Market Trends

Increasing trend of partnerships between refineries and technology providers to develop advanced clean fuel production technologies coupled with rising collaborations with firms specializing in electrolyzer technology and carbon capture to enhance operational efficiency and reduce production costs will improve the industry outlook. Growing transition to low sulfur fuels due to regulation mandating including the International Maritime Organization's (IMO) 2020 regulations are set to encourage refineries to invest in hydrogen production technologies to meet the new sulfur content standards will complement the product growth.
 

Asia Pacific Petroleum Refining Hydrogen Generation Market Analysis

Based on deliver mode, the captive segment is projected to surpass USD 32 billion by 2032, owing to its reduced transportation and logistics costs associated with hydrogen delivery. Rising regulatory compliance is pushing demand for clean fuel production facilities that can align with regulations requiring low-sulfur fuels and lower greenhouse gas emissions, helping refineries to meet both local and international standards leading to boost the on-site production demand. Furthermore, increasing clean energy demand from various petrochemical processes boosts the demand for captive production to improve refineries' response time and meet market needs while minimizing storage and handling complexities associated with external hydrogen supply.
 

Based on process, the steam reformer segment in Asia Pacific petroleum refining hydrogen generation market is set to grow at a CAGR of over 6.5% through 2032, due to its cost-effectiveness, especially when utilizing natural gas as a feedstock. Rising stricter environmental regulations in the Asia Pacific necessitate the reduction of sulfur emissions and greenhouse gases from refineries leading to boost process adoption to produce low sulfur fuels and align with regulations. Increasing innovations in steam reforming technology, including advancements in catalyst development and process optimization to enhance the efficiency and reliability of hydrogen production will stimulate the process penetration.
 

China petroleum refining hydrogen generation market is anticipated to reach USD 15 billion by 2032. Rising crude oil processing capacities in China are set to increase demand for clean fuel for desulfurization processes to produce low-sulfur gasoline and diesel that comply with its stringent emission standards will uplift the business statistics. Increasing government commitment to promoting green fuel for refinery applications will propel product adoption. For instance, state-owned enterprises such as Sinopec are integrating traditional steam reforming with renewable energy-powered electrolysis to generate hydrogen for refining and petrochemical applications. Furthermore, the country is investing heavily in on-site clean energy production to reduce dependency on external supplies and ensure operational reliability, thereby driving the business landscape.
 

In the U.S. increasing adoption of low-carbon hydrogen solutions to align with the country’s decarbonization goals will augment the product growth. This trend is driven by the need to comply with federal and state-level regulations, such as California’s Low Carbon Fuel Standard (LCFS), which incentivizes refineries to reduce carbon intensity. Expansion of renewable diesel and biofuel production will propel clean fuel demand for feedstock processing and conversion, thereby significantly boosting the industry growth.
 

Asia Pacific Petroleum Refining Hydrogen Generation Market Share

Eminent players are forming alliances with refineries and energy firms to build large-scale hydrogen production plants. These collaborations allow technology and resource sharing, enabling firms to meet rising hydrogen demand efficiently. Key players are investing in low-carbon hydrogen generation, focusing on blue and green hydrogen technologies to align with global emissions targets. They are implementing carbon capture and storage (CCS) alongside steam methane reformers to produce low-carbon hydrogen, ensuring compliance with stringent environmental regulations.
 

Asia Pacific Petroleum Refining Hydrogen Generation Market Companies

Eminent players operating in the Asia Pacific petroleum refining hydrogen generation industry are:

• Air Products and Chemicals
• Air Liquide
• BP
• Chevron Corporation
• Chennai Petroleum Corporation
• Cummins
• ExxonMobil
• Linde
• Messer Group
• Nel Hydrogen
• Plug Power
• Praxair
• Reliance Industries
• Sinopec
• Suncor Energy
   

Asia Pacific Petroleum Refining Hydrogen Generation Industry News:

• In January 2024, Chennai Petroleum Corporation Ltd (CPCL) is planning to build itself as a hydrogen production hub to cater to its internal requirements and supply green hydrogen for mobility, petrochemical production, and other energy uses. In collaboration with IIT-Madras and industry partners, a pilot electrolyzer is being developed and will be set up at the CPCL site to produce green hydrogen for various applications.
   
• In June 2022, Sinopec announced the successful production of green hydrogen at China’s first 10,000-ton demonstration project. The hydrogen is being supplied to local refineries to replace natural gas as a power source, achieving a complete process from production to utilization. This marks the first instance of China integrating the entire industrial chain for a 10,000-ton green hydrogen refining project.
   

This Asia Pacific petroleum refining 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 Delivery

• Captive
• Merchant

Market, By Process

• Steam Reformer
• Electrolysis
• Others

The above information has been provided for the following countries:

• China
• India
• Japan