North America Petroleum Refining Hydrogen Generation Market - By Delivery Mode (Captive and Merchant), By Process (Steam Reformer, Electrolysis) & Forecast, 2024 – 2032

North America Petroleum Refining Hydrogen Generation Market Size

North America Petroleum Refining Hydrogen Generation Market was valued USD 10.2 billion in 2023 and is anticipated to grow at a CAGR of 5.9% between 2024 and 2032. It refers to the process of producing hydrogen specifically for use in petroleum refinery processes such as hydrocracking and desulfurization, to break down heavy hydrocarbons, remove sulfur compounds, and improve the quality of refined fuels. The hydrogen is typically produced through methods such as steam methane reforming (SMR) or electrolysis, providing a crucial input that enhances the efficiency and environmental compliance of modern refineries.
 

Rising push towards stricter environmental regulations to limit sulfur content in fuels, coupled with increasing emphasis on reducing greenhouse gas emissions in refineries will propel the industry growth. Growing technological advancements in clean fuel production to reduce production costs and improve product scalability are set to influence the product adoption by refineries aiming to modernize and expand their operations.
 

Rising oil and gas companies investments in hydrogen generation capabilities as part of their long-term strategies to ensure sustainability and regulatory compliance will augment the business landscape. Increasing government incentives and subsidies to accelerate hydrogen generation in the petroleum refining sector in line with rising domestic hydrogen production capabilities to reduce North America reliance on imported crude oil and refined products will stimulate the market statistics.
 

North America Petroleum Refining Hydrogen Generation Market Trends

Increasing petroleum industry ambitious sustainability targets to reduce their carbon footprints and align with global climate goals is set to drive the market growth. Rising shift towards low carbon fuel across the refining sector will encourage companies to explore clean gas production solutions using renewable energy sources to reduce greenhouse gas emissions thereby complementing the business statistics.
 

North America Petroleum Refining Hydrogen Generation Market Analysis

Based on deliver mode, the market is segmented into captive and merchant. Captive is projected to grow by more than USD 10.6 billion by 2032. Rising adoption of cost efficient and control methods for hydrogen generation is driving on site processes demand to reduce transportation and distribution costs associated with sourcing hydrogen from external suppliers. Additionally, having control over the clean fuel production process allows refineries to optimize operational efficiencies and reduce overall expenses thereby boosting the business scenario.
 

Based on process, the North America petroleum refining hydrogen generation market is segmented into steam reformer, electrolysis and others. Electrolysis is set to grow at a CAGR of over 6% through 2032. Rising focus of government and regulatory bodies on reducing carbon emissions and promoting cleaner energy sources is set to boost the process demand. Growing advancements in technology to improve its efficiency and reduce costs coupled with rising innovations comprising proton exchange membrane (PEM) electrolysis and solid oxide electrolysis cells (SOEC) to enhance the efficiency, scalability, and cost-effectiveness of hydrogen production, which will stimulate the process penetration.
 

U.S. petroleum refining hydrogen generation market is anticipated to grow over USD 13 Billion by 2032. Stringent environmental regulations in the U.S., including the Clean Air Act and the Renewable Fuel Standard (RFS) are driving the industry growth. Rising shift towards producing hydrogen from renewable sources comprising electrolysis of water using renewable electricity coupled with increasing investments in developing advanced technologies to optimize production costs and reduce environmental impacts will impact the business landscape. Increasing investments in clean energy infrastructure to support transition to a low carbon economy and accelerate the adoption of clean energy carriers which will enhance the uptake of sustainable energy solutions, supporting the environmental goals.
 

North America Petroleum Refining Hydrogen Generation Market Share

Eminent players are focusing on expanding their geographic footprint by entering emerging markets with significant growth opportunities. They are customizing their products and services to align with the specific needs and preferences of regional markets, ensuring they remain competitive and relevant. Furthermore, several players are adopting strategies of vertical integration and diversification by growing into adjacent segments of the hydrogen value chain, such as distribution, storage, and end-use applications, aiming to strengthen their market position and capture additional value.

North America Petroleum Refining Hydrogen Generation Market Companies

Eminent players operating in the North America Petroleum Refining Hydrogen Generation industry are:

• Air Liquide
• Air Products and Chemicals, Inc
• BP Plc
• Cummins Inc
• Chevron Corporation
• ExxonMobil
• Irving Oil
• Linde plc
• Messer Group GmbH
• Nel Hydrogen
• Praxair, Inc
• Plug Power Inc.
• Shell Global
• Suncor Energy
   

North America Petroleum Refining Hydrogen Generation Industry News:

• In July 2022, Irving Oil planned to enhance its hydrogen capacity at the Saint John refinery, aiming to establish hydrogen fueling infrastructure in the Atlantic Canada. This initiative positions the company as the first to introduce hydrogen to the market. It will become the first refinery in Canada and one of the first in the region to purchase an electrolyzer, and invest in this clean energy technology.
   
• In May 2021, Suncor Energy partnered with ATCO Ltd on the early design and engineering of a potential clean hydrogen project near Alberta. Around 65% of the clean hydrogen produced will be utilized in refining processes and for steam and electricity cogeneration at the Suncor Edmonton Refinery, potentially cutting refinery emissions by up to 60%. This project will significantly support Alberta's hydrogen strategy, boost economic activity and job creation in the province, contributing to Canada's net-zero targets.
   

North America 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 Mode

• Captive
• Merchant

Market, By Process

• Steam Reformer
• Electrolysis
• Others

The above information has been provided for the following countries:

• U.S.
• Canada
• Mexico