Captive Petroleum Refinery Hydrogen Generation Market Size - By Process (Steam Reformer, Electrolysis), Regional Outlook & Growth Forecast, 2024 – 2032

Captive Petroleum Refinery Hydrogen Generation Market Size

Captive Petroleum Refinery Hydrogen Generation Market was valued at USD 47.6 billion in 2023 and is anticipated to grow at a CAGR of 6.5% from 2024 to 2032. It refers to the on-site production of hydrogen specifically for use within a petroleum refinery. In this setup, hydrogen is generated through processes such as steam methane reforming or electrolysis, to meet the refinery's own requirements for hydrogen in various operations, such as desulfurization and hydrocracking. This method allows refineries to produce hydrogen independently, reducing reliance on external suppliers and ensuring a consistent supply for their processes.
 

Increasing focus to reduce carbon emissions and sulfur content in fuels in line with growing demand for cleaner fuels, such as ultra-low sulfur diesel (ULSD) and other environmentally friendly products will propel the process adoption. Rising adoption of processes offering refineries greater energy security by reducing dependence on third-party suppliers will foster the business landscape.
 

Growing innovations in hydrogen production technologies to reduce operational costs, increase energy efficiency, and lower emissions are encouraging refineries to adopt captive systems. Furthermore, rising fluctuations in global hydrogen supply chains, especially during geopolitical tensions or supply disruptions, push refineries toward self-sufficiency, thereby strengthening the process penetration.
 

Captive Petroleum Refinery Hydrogen Generation Market Trends

Rising energy transition on decarbonizing industrial sectors, encouraging petroleum companies to adopt on site clean fuel production, supporting them to meet their emission reduction targets and corporate sustainability goals will drive the business scenario. Furthermore, companies are shifting towards captive clean energy production to reduce the overall production costs and utilize byproducts from other refining processes as feedstock. This cost advantage is significant in an environment where companies are under pressure to reduce operational expenses while maintaining product quality and compliance.
 

Captive Petroleum Refinery Hydrogen Generation Market Analysis

Based on process, the steam reformer segment is projected to surpass USD 71.6 billion by 2032, on account of its high efficiency, and capability of converting hydrocarbons into hydrogen with high yields. Furthermore, the process allows refineries to gain greater control over their energy sources, enhancing security and operational flexibility stimulating the industry scenario. Rising investments in technological innovations such as improved catalyst efficiency, waste heat recovery systems, and modular reformer designs, will further boost the business growth.
 

Asia Pacific captive petroleum refinery hydrogen generation market is likely to exceed USD 32.7 billion by 2032. Rapidly expanding refining capacity of countries such as China, India, and Southeast Asia to meet soaring energy demand fueled by industrialization, urbanization, and economic growth will augment the business statistics. Rising stricter environmental standards, including, India’s Bharat Stage VI (BS-VI) and China’s National VI fuel standards among others require refineries to reduce sulfur content in their fuels, increasing the need for hydrogen in desulfurization processes, thereby complementing the process growth.
 

Furthermore, increased investments in natural gas infrastructure, will encourage refineries to capitalize on the availability of cheap natural gas to generate hydrogen on-site, reducing dependency on external hydrogen suppliers and minimizing operational costs.
 

In the U.S. rising stringent fuel and emission standards, such as the Environmental Protection Agency’s (EPA) Tier 3 regulations, which require refineries to produce ultra-low-sulfur fuels leading to hydrogen demand in refinery operations, thereby improving the process adoption to meet these regulatory requirements cost-effectively and reliably. Furthermore, growing federal and state policies aimed at reducing greenhouse gas emissions are encouraging refineries to adopt low-carbon technologies to produce hydrogen with a lower carbon footprint, aligning with decarbonization goals and sustainability initiatives, thereby, propelling the industry trajectory.
 

Captive Petroleum Refinery Hydrogen Generation Market Share

Eminent players are investing heavily in research and development to improve the efficiency of hydrogen generation technologies including steam methane reforming (SMR) and autothermal reforming (ATR).  Additionally, key players are integrating carbon capture and storage (CCS) technologies into their systems to minimize carbon emissions, addressing both regulatory pressures and corporate sustainability goals. These innovations help companies meet the growing demand for low-carbon hydrogen solutions while optimizing refinery processes. Furthermore, to bolster their presence in captive hydrogen generation, major players are entering strategic partnerships with refineries, natural gas suppliers, and technology providers.
 

Captive Petroleum Refinery Hydrogen Generation Market Companies

Eminent players operating in the captive petroleum refinery hydrogen generation industry are:

• Air Liquide
• Air Products and Chemicals
• Chennai Petroleum Corporation (CPCL) 
• Emerson
• Fluor Corporation
• GAIL Limited
• Maire Tecnimont
• Nel Hydrogen
• Next Hydrogen
• Technip Energies
   

Captive Petroleum Refinery Hydrogen Generation Industry News

• In May 2024, GAIL has inaugurated its first green hydrogen plant in Vijaipur, India. Initially, the hydrogen produced will be utilized alongside natural gas for on-site operations at the facility. Furthermore, the company envisions broadening its horizons by supplying hydrogen to retail customers in the vicinity and transporting it using high-pressure cascades.
   
• In August 2023, Technip Energies clinched a contract from BP to establish a hydrogen production unit at the Kwinana biorefinery in Western Australia. The project is set to convert bio feedstocks into sustainable aviation fuel (SAF) and biodiesel. Furthermore, the hydrogen production unit will seamlessly integrate with the current terminal operations, and there's a possibility for green hydrogen production, which is presently under evaluation
   

This 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 regions and countries:

• North America
  • U.S.
  • Canada
  • Mexico
• Europe
  • Germany
  • Italy
  • Netherlands
  • Russia
• Asia Pacific
  • China
  • India
  • Japan
• Middle East & Africa
  • Saudi Arabia
  • Iran
  • UAE
  • South Africa
• Latin America
  • Brazil
  • Argentina
  • Chile