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

Petroleum Refinery Merchant Hydrogen Generation Market Size

Petroleum Refinery Merchant Hydrogen Generation Market was valued at USD 10.3 billion in 2023 and is anticipated to grow at a CAGR of 7.6% between 2024 and 2032. It refers to the production of hydrogen at dedicated facilities, which is then commercially supplied to petroleum refineries. Merchant hydrogen generation is designed to meet the hydrogen needs of refineries efficiently, often with a focus on ensuring reliable supply, cost-effectiveness, and adherence to environmental regulations.
 

Rising pressure on petroleum refineries to comply with stringent environmental regulations aimed at reducing emissions and improving air quality is set to boost the market growth. Increasing advancements in hydrogen production technologies, such as electrolysis, steam methane reforming (SMR), and auto-thermal reforming (ATR), to make hydrogen generation more cost-effective and efficient additionally complement the business landscape.
 

Growing demand for processes offering economic benefits to refineries by outsourcing hydrogen production to specialized facilities, avoiding high capital and operational costs associated with on-site clean production units thereby propelling business statistics. Furthermore, increasing demand for cleaner fuels is encouraging refineries to invest in technologies that produce low-sulfur and low-emission products leading to augment merchant hydrogen adoption, as it supports processes that produce cleaner fuels and meet the evolving market demands.
 

Petroleum Refinery Merchant Hydrogen Generation Market Trends

Growing demand for solutions offering extensive and well-developed supply chains, ensuring a reliable and consistent hydrogen supply is fostering process adoption to leverage their infrastructure and logistics capabilities to deliver hydrogen efficiently, minimizing downtime and operational disruptions. Additionally, growing investments in hydrogen infrastructure and the development of hydrogen hubs globally are boosting the merchant hydrogen market.
 

Petroleum Refinery Merchant Hydrogen Generation Market Analysis

Based on process, the steam reformer segment is projected to surpass USD 17 billion by 2032, on account of their long operational life and robust technology making them a trusted choice for merchant hydrogen suppliers. Growing market demand for clean fuel, driven by the need for cleaner fuels and decarbonization efforts, is spurring investment in process growth. Furthermore, their seamless integration into hydrogen infrastructure and compatibility with gas processing units and hydrogen purification systems is complementing industry expansion.
 

Asia Pacific petroleum refinery merchant hydrogen generation market is likely to exceed USD 5.5 billion by 2032. Rapid industrialization and urbanization in the region coupled with rising enforcement of stricter environmental regulations to combat air pollution and reduce greenhouse gas emissions will boost business growth. Furthermore, many Asia Pacific countries are committed to achieving carbon neutrality and have set ambitious targets for reducing carbon emissions leading to complementing merchant hydrogen demand by providing a cleaner alternative to traditional fuels leading to augment process penetration.

In the U.S. refineries are increasingly turning to merchant hydrogen to optimize their operations and reduce costs. Refinery companies are outsourcing hydrogen production to benefit from economies of scale achieved by specialized hydrogen producers, reducing operational costs and enhancing economic efficiency. The country is investing heavily in clean fuel infrastructure, including production facilities and distribution networks. This investment supports the growth of merchant hydrogen supply chains and ensures a reliable and consistent hydrogen supply to refineries, enhancing operational stability and efficiency.
 

Petroleum Refinery Merchant Hydrogen Generation Market Share

Eminent players are focusing on geographic expansion to tap into emerging markets with growing hydrogen demand. This includes establishing production facilities in key refining hubs and expanding their presence in regions with favorable regulatory environments and investment incentives. Key players are developing and expanding hydrogen production plants, storage facilities, and distribution networks to support the growing demand from petroleum refineries. This includes building state-of-the-art facilities capable of producing high-purity hydrogen and implementing efficient logistics systems to deliver hydrogen safely and cost-effectively.
 

Petroleum Refinery Merchant Hydrogen Generation Market Companies

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

• Air Products and Chemicals, Inc.
• Cummins Inc
• Chevron Phillips
• ExxonMobil
• ITM Power
• Green Hydrogen Systems
• KBR, Inc.
• Nel ASA
• Thyssenkrupp
• Uniper SE
   

Petroleum Refinery Merchant Hydrogen Generation Industry News

• In August 2024, ITM Power, a UK-based company, inked a deal with Shell to provide electrolyser stacks for the Shell Rheinland Energy and Chemicals Park located in Germany. This contract comes on the heels of Shell's final investment decision regarding the REFHYNE II project. This initiative aims to harness renewable electricity to produce a daily output of up to 44,000 kg of renewable hydrogen. The generated hydrogen will be fed into Shell’s Wesseling refinery, playing a pivotal role in the refinery's decarbonization efforts.
   
• In March 2024, Uniper partnered with Phillips 66 Limited to supply green hydrogen to the Humber Refinery. The Humber H2ub (Green) project will initially feature up to 120 MW of electrolytic hydrogen production capacity, with plans for future expansion. This green hydrogen facility is part of Uniper's broader Killingholme Energy Transformation Hub initiative.
   

This petroleum refinery merchant 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