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

Petroleum Refining Hydrogen Generation Market Size

Petroleum Refining Hydrogen Generation Market was valued USD 57.9 billion in 2023 and is anticipated to grow at a CAGR of 6.7% from 2024 to 2032. It is the process of producing hydrogen gas as a byproduct or through dedicated units within a petroleum refinery. The product released is primarily utilized for various purposes within the refinery, such as hydrotreating, hydrocracking, and desulfurization, to remove impurities and upgrade petroleum products. Additionally, hydrogen produced can also be used for other industrial applications or further processed to meet specific purity requirements.
 

Growing consumer demand for cleaner transportation fuels, such as low-sulfur gasoline and diesel, is driving refineries to invest in hydrogen generation technologies to enable the production of cleaner and higher quality fuels. Increasing reliance on hydrogen in processing units for upgrading crude oil and refining heavier fractions into high value products will augment the business statistics.
 

Growing emphasis on sustainability and decarbonization is prompting refineries to explore the production of renewable fuel from different sources thereby driving investments in hydrogen generation methods and technologies. Rising collaborations and partnerships between refining companies, technology providers, research institutions, and government agencies to advance clean energy generation technologies will boost the product penetration.
 

Petroleum Refining Hydrogen Generation Market Trends

Rising transition to low carbon fuel across the petroleum refining sector will encourage key players to explore clean gas production methods such as electrolysis using renewable energy sources to reduce greenhouse gas emissions thereby uplifting the business statistics. Increasing government support in terms of supportive policies and incentives to promote hydrogen production and adoption in various key applications coupled with rising refineries partnerships and collaborations with technology providers, will drive the industry outlook.
 

Petroleum Refining Hydrogen Generation Market Analysis

Based on deliver mode, the captive segment is projected to reach USD 83 billion by 2032. Rising integration of clean gas within the petroleum refinery to streamline refinery operations, minimize transportation logistics, and achieve greater process integration is set to influence the market growth. Furthermore, the cost advantage of in-house hydrogen production over merchant delivery, particularly in regions with abundant feedstock availability and favorable energy economics are additional factors driving the industry scenario.
 

Based on process, the electrolysis segment is set to grow at a CAGR of over 7.3% through 2032. Growing emphasis on decarbonization and the transition to clean energy has increased the process adoption owing to its sustainable pathway for producing hydrogen without relying on fossil fuels, thereby reducing greenhouse gas emissions. Furthermore, it plays a critical role in energy storage and grid balancing by converting surplus renewable electricity into clean fuel during periods of low demand or excess generation, thereby driving industry scenario.
 

Europe petroleum refining hydrogen generation market revenue to hit USD 26 billion by 2032. The European Union (EU) has set ambitious energy transition goals, including the European Green Deal and the EU Hydrogen Strategy and as a part of strategy, petroleum refineries are exploring hydrogen production from renewable sources to align with sustainability objectives and reduce their carbon footprint thereby stimulating the business growth. Rising investments in developing advanced technology including proton exchange membrane electrolysis and alkaline electrolysis to produce green hydrogen from renewable sources will create growth opportunities and enhance product competitiveness.
 

In the U.S. rising advancement in hydrogen generation technologies in line with integration of CCS production processes to enable refineries to capture and store carbon emissions will augment the business statistics. Growing investments in clean energy infrastructure development to support the transition to a low carbon economy and promote the widespread adoption of clean energy carriers will improve the product adoption.
 

Petroleum Refining Hydrogen Generation Market Share

Eminent players are targeting geographic expansion strategies by entering emerging markets with high growth potential, establishing regional offices or manufacturing facilities, and tailoring products and services to meet local needs and preferences. Furthermore, some companies are pursuing vertical integration and diversification by expanding into adjacent segments of the hydrogen value chain to strengthen their position. Key players are also expanding their hydrogen production capacity through investments in new facilities, upgrades to existing infrastructure, and deployment of advanced production technologies.
 

Petroleum Refining Hydrogen Generation Market Companies

Eminent players operating in the petroleum refining hydrogen generation industry are:

• Air Products and Chemicals, Inc
• Air Liquide
• BP Plc
• ExxonMobil
• Cummins Inc
• Chevron Corporation
• Linde plc
• Indian Oil Corporation Ltd
• Messer Group GmbH
• Nel Hydrogen
• Plug Power Inc.
• Praxair, Inc
• Reliance Industries Ltd
• Resonac Corporation
• Shell Global
   

Petroleum Refining Hydrogen Generation Industry News

• In November 2022, Air Liquide and TotalEnergies SE plan to create a facility for producing renewable and low carbon hydrogen to convert the Grandpuits site in France into a biorefinery. The project with investment of over USD 133 million, aims to recycle biogas from the biorefinery into renewable hydrogen, utilizing biomass for sustainable aviation fuel production.
   
• In July 2021, the Indian Oil Corporation Limited, announced the establishment of the Green Hydrogen plant at its Mathura refinery. As part of its strategic growth trajectory, the company aims to intensify its emphasis on refining and fuel marketing while expanding into petrochemicals, hydrogen, and electric mobility in the coming decade.
   

This petroleum refining hydrogen generation market research report includes an in-depth coverage of the industry with estimates & forecast in terms of volume and 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 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