Refinery Electrification Market Size, Industry Analysis Report, Regional Outlook, Application Development Potential, Competitive Market Share & Forecast, 2024 – 2032

Refinery Electrification Market Size

Refinery Electrification Market is speculated to showcase remarkable growth from 2024 to 2032, as it replaces conventional oil refineries using fossil fuel for energy generation with electricity from renewable sources.
 

One of the chief drivers bolstering industry expansion is the growing need for zero-carbon emissions in end-use industries, including chemical, industrial equipment manufacturing, and pharmaceutical, among other sectors, along with the surging adoption of green initiatives worldwide. For instance, prior to the UN Climate Summit COP 28 in Dubai in November-December in 2023, the Indian Union government announced two green initiatives - one is a green credit program aimed at afforestation and water conservation, while the other is an ecomark scheme designed to encourage the use of environmentally friendly products.
 

Refinery Electrification Market Trends 

The multiple advantages, including decreased greenhouse gas emissions, and improved energy efficiency, reduced operational expenses are favoring refinery electrification programs. Further, the bolstered competitiveness in swiftly expanding decarbonized economies is shaping the market outlook. According to the United States Environmental Protection Agency’s Greenhouse Gas Reporting Program 2022, the refinery sector contributed 163.6 million metric tons of carbon dioxide from 137 refineries in the country in 2021.
 

Recently, during the Russia-Ukraine war, the industry witnessed slow progression due to the geopolitical tensions, which impeded oil refineries in affected regions as well as import & export operations across the world. Many countries imposed severe sanctions on Russian products. It also affected the R&D of new technologies on account of lack of funds. In addition, the high investment required in the installation and management of electrification equipment is likely to impede market demand.
 

Refinery Electrification Market Analysis 

The power distribution segment is anticipated to hold the major market revenue by 2032 owing to the shifting preference of businesses towards innovative technologies to improve their energy efficiency and reduce their carbon footprint. For instance, in February 2023, BP Plc, a British multinational oil & gas company, announced its plans to transform the Valencia region into green hydrogen production site. Additionally, power distribution grids supply electricity in different areas including production units, administrative offices, and residential quarters, which is benefitting segment growth.
 

The refinery electrification market from the solar segment is estimated to record substantial gains during the forecast timeframe as a result of promising advancements in solar technology and battery storage systems, making it easier for refineries to integrate into their business operations.
 

Asia Pacific refinery electrification industry is poised to depict significant growth through 2032 impelled by the rising demand for clean energy sources and stringent environmental regulations in countries such as China and India. In a recent instance, China and Brazil got into a discussion in March 2023 to develop a new fund for the advancement of the green industry and renewable energy in both nations. With this collaborative program, China intended to fuel its Green Hydron Project, thereby aiding industry growth.
 

Refinery Electrification Market Share  

Top companies operating in the global refinery electrification industry are ABB Ltd., State Grid Corporation of China, Siemens AG, Larsen & Toubro Limited, Schneider Electric SE, Rockwell Automation Inc., Fortum Corp, Emerson Electric Co. General Electric Co., Honeywell International Inc., Uniper SE, Yokogawa Electric Corporation, Eaton Corporation plc, Electricite de France SA, and Enel SpA, among others. These firms are focusing on undertaking strategic partnerships with public and private businesses and indulge in rigorous R&D projects to stay ahead in the market.
 

Refinery Electrification Industry News

• In June 2022, ABB Ltd., an automation and energy firm, joined hands with Braya Renewable Fuels, a Canadian refiner, to support renovate the Come By Chance oil refinery in Newfoundland and Labrador, Canada, to make it a renewable fuels production center. The deal was purposed to provide High-fidelity Process Simulator for HI and HDO units.