Europe Captive Petroleum Refinery Hydrogen Generation Market Size

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.