Captive Petroleum Refinery Hydrogen Generation Market Trends

Growth Drivers:

• High demand for advanced hydrogen production technologies: Innovations in the captive petroleum refinery hydrogen generation technologies such as steam reforming and electrolysis are anticipated to boost the overall market growth in the coming years. The continuous research and development activities by some of the large-capacity electrolyzers including Cummins Hylyzer and Siemens Sliyzeare set to enhance operational efficiency, mitigate the greenhouse gas emissions associated with hydrogen production, and ensure long-term operational gains.
  
  The advanced electrolysis process method is gaining traction owing to the rising demand for green hydrogen. Several start-ups are introducing wind turbine platforms for hydrogen production through electrolysis. For instance, HiSeas Energy is a U.S.-based start-up that provides stable, low-cost & mass offshore wind turbines to energize electrolysis for hydrogen production.
• Increasing popularity of green hydrogen: The rising global pressure to reduce carbon emissions is significantly driving the petroleum refining industry to invest in green hydrogen generation technologies. For green hydrogen generation, companies are integrating renewable energy sources, which aids refiners in effectively complying with regulatory demands and consumers' expectations. Integrating renewable energy sources such as wind, solar, and hydropower into the production cycle offers a pathway to introduce green hydrogen. Hydrogen is essential in various refining processes, including hydrocracking and desulfurization, using low-carbon or green hydrogen refiners can effectively reduce the carbon intensity of their operations.

Challenges

• High capital investments: The advanced process technologies for hydrogen generation are expensive due to the high upfront and installation costs. The installation of these technologies requires significant engineering and construction efforts, this adds to costs and extends project timelines. Small-scale refineries often fail to adopt modern technologies due to budget constraints, limiting new opportunities.
• Poor hydrogen generation infrastructure: The inadequate infrastructure for hydrogen storage, transport, and distribution can present significant challenges to the feasibility of captive hydrogen generation in petroleum refineries. The refinery plants require sufficient storage capacity to manage hydrogen production fluctuations and to ensure a steady supply for refining processes, limited storage options can lead to operational inefficiencies.