Europe Captive Petroleum Refinery Hydrogen Generation Market Size - By Process, Growth Outlook, Forecast, 2025 – 2034

Europe Captive Petroleum Refinery Hydrogen Generation Market Size

Europe captive petroleum refinery hydrogen generation market size was valued at USD 12.7 billion in 2024 and is estimated to grow at a CAGR of 7% from 2025 to 2032. It involves the creation of hydrogen within a petroleum refinery's premises for its own use. This process typically employs methods such as steam methane reforming or electrolysis to generate hydrogen, which is then utilized in various refinery operations such as desulfurization and hydrocracking. By adopting this approach, refineries can produce hydrogen internally, thereby reducing their dependence on external sources and maintaining a steady supply for their operational needs.
 

Increasing pressure on refineries to comply with strict environmental regulations for carbon emission reduction will boost the adoption of on-site clean fuel processes. Growing demand to lower clean fuel production costs by eliminating transportation expenses and reducing exposure to volatile market prices will drive the industry growth. Furthermore, European refineries benefit from various EU funding programs and government incentives that support investments in sustainable energy technologies, including hydrogen. The availability of grants, tax breaks, and research and development funding encourage refineries to set up captive hydrogen facilities as part of their modernization projects, fostering process adoption.
 

Rising investments in advanced technologies, particularly electrolysis and steam methane reforming will enhance the captive hydrogen generation feasibility, driving the market growth. Additionally, these innovations are improving efficiency and cost-effectiveness, enabling refineries to optimize their hydrogen production processes, further incentivizing on site generation.
 

Europe Captive Petroleum Refinery Hydrogen Generation Market Trends

Presence of broader energy transition landscape in the region encouraging industries to adapt to sustainable energy solutions, bolstering process adoption to align with the energy transition strategies and reduce reliance on fossil fuels and improve environmental outcomes. Furthermore, rising refineries captive hydrogen production adoption to maintain their market position and meet growing consumer and stakeholder expectations for greener operations will complement the business scenario.
 

Europe Captive Petroleum Refinery Hydrogen Generation Market Analysis

Based on process, the Europe captive petroleum refinery hydrogen generation industry is segmented into electrolysis, steam reformer, and others. The electrolysis segment is projected to surpass USD 20.5 billion by 2034. Increasing advancements in electrolysis technology to improve efficiency and reduce operational costs for clean energy production will stimulate process adoption in refineries. Increasing shift towards low-carbon fuel production, combined with government incentives, research funding, and investments in hydrogen infrastructure, will encourage the processes penetration.
 

Additionally, the emergence of innovative business models, such as hydrogen-as-a-service, is facilitating advanced process adoption. This model allows refineries to benefit from hydrogen generation while minimizing financial risk and maintaining operational flexibility, contributing to positive business outcomes.
 

Germany captive petroleum refinery hydrogen generation market is anticipated to reach USD 3 billion by 2034. Improving transition from coal-dependent processes to cleaner alternatives, as part of a broader industrial upgrading strategy, will uplift process adoption. This shift will enable refineries to produce low-carbon fuels and comply with stricter environmental regulations. Growing domestic demand for clean energy, fueled by urbanization and industrial growth, will promote process implementation. This adoption will allow refineries to produce hydrogen for hydrotreating and hydrocracking processes, facilitating the production of cleaner transportation fuels.
 

In the U.S. growing emphasis on energy independence and security will boost on-site clean fuel production, helping to mitigate risks associated with global supply chain disruptions and volatile market prices. Furthermore, increasingly stringent fuel and emission standards, such as the EPA's Tier 3 regulations mandating the production of ultra-low-sulfur fuels, will stimulate 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 will complement process growth.
 

Europe Captive Petroleum Refinery Hydrogen Generation Market Share

Eminent players are integrating renewable energy sources into their hydrogen production processes. They are using wind, solar, and hydroelectric power for electrolysis, which reduces carbon emissions and aligns with global sustainability goals. These companies are also investing in market development and education initiatives to increase awareness about the benefits of captive hydrogen generation. They are engaging with stakeholders, including government entities, industry associations, and end-users, to promote the advantages of hydrogen in refining and other applications.
 

Europe Captive Petroleum Refinery Hydrogen Generation Market Companies

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

• Air Liquide
• Air Products and Chemicals
• BASF
• BP
• Emerson
• ExxonMobil
• Element Fuel Holdings
• Fluor Corporation
• Next Hydrogen
• Nel Hydrogen
• Technip Energies
   

Europe Captive Petroleum Refinery Hydrogen Generation Industry News:

• In September 2024, BP and Iberdrola have created a joint venture in Spain to develop a 25 MW green hydrogen project. With the final investment decision made, the project aims to support the decarbonization of BP’s Castellon refinery by 2026, potentially reducing CO2 emissions by 23,000 tons annually.
   
• In February 2023, BP has launched the HyVal green hydrogen cluster at its Castellon refinery. This public-private initiative aims to develop up to 2000 MW of electrolysis capacity by 2030 to produce green hydrogen, supporting the decarbonization of the refinery's operations. bp’s investment in green hydrogen, biofuels, and renewable energy in Castellon could reach up to USD 2.1 billion by 2030.
   

Europe 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 2034, 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:

• Germany
• UK
• France
• Italy
• Netherlands
• Russia