Petroleum Refining Hydrogen Market Size & Share 2025 - 2034

Petroleum Refining Hydrogen Market Size

The global petroleum refining hydrogen market was valued at USD 139.6 billion in 2024 and is estimated to grow at a CAGR of 12.6% from 2025 to 2034. The need to produce ultra-low sulfur diesel (ULSD) and other low-emission fuels in line with growing global shift towards cleaner energy sources has intensified the product demand.

Rising stricter environmental regulations by the government to curb emissions from refineries such as the International Maritime Organization's (IMO) sulfur cap and the European Union’s stringent emissions regulations, compel refineries to produce cleaner fuels will propel the product adoption. In July 2023, according to the Director of R&D, Indian Oil Corporation Limited (IOC), the largest marketer of fuel in India plans to switch 50% of the hydrogen used in its refinery to green hydrogen by the year 2030.
 

The increased implementation of advanced technologies, including modern hydroprocessing crude oil with lowered contaminants, will enhance petroleum refining hydrogen market growth. Furthermore, rising innovations in catalysts and process designs to enable more efficient hydrogen utilization, enhancing the capacity to produce high-quality fuels are additional factors driving the product penetration.
 

Expansion of refining capacities, especially in developing regions, and upgradation of existing facilities contribute to higher hydrogen consumption, thereby fostering the industry statistics. For instance, in March 2023, according to a government document, Indian state-run refineries will start green hydrogen production in 2025, ahead of the 5 million t/yr national target for 2030. IOC, HPCL, and MRPL will add 14,800 t/yr by 2025-26, while BPCL, Numaligarh Refinery, and Chennai Petroleum plan 16,000 t/yr by 2030.
 

Petroleum Refining Hydrogen Market Trends

• Rising government enforcement of strict emission norms to reduce carbon footprints in industrial sectors will escalate the product adoption. Growing policies such as the EU Green Deal, India's National Green Hydrogen Mission, and the U.S. Inflation Reduction Act are pushing refineries to transition from grey hydrogen to low-carbon alternatives such as blue and green hydrogen, leading to petroleum refining hydrogen market expansion.
   
• Rising leading oil companies aim to reduce refinery emissions by incorporating low-carbon hydrogen into their processes will enhance the business prospects. Moreover, the use of green hydrogen obtained through renewable energy source electrolysis enables refineries to reach sustainability and net zero emission goals. In February 2023, BP established a green hydrogen cluster at its Castellón refinery in the Valencia region of Spain. This effort is part of a public-private initiative led by BP, which seeks to develop an electrolysis capacity of up to 2GW by 2030 for producing green hydrogen to be used in refining processes.
   
• Furthermore, great number of refineries are adopting the production of hydrogen with CCS technologies to simultaneously generate blue hydrogen and mitigate CO2 emissions economically. This helps refineries shift towards cleaner hydrogen more gradually, fostering the petroleum refining hydrogen market outlook.
   
• Ongoing advancements in solid oxide electrolyzers (SOEC), proton exchange membrane (PEM) electrolysis, and biomass gasification to make hydrogen production more efficient and cost-effective. These innovations enable refineries to produce hydrogen with lower energy consumption and emissions, leading to bolstering the business trend. For instance, in September 2024, Ingeteam secured a 133 MW green hydrogen project for a German oil refinery. As a technology partner, the company will provide 20 full skid units featuring 40 INGECON H2 E6000 rectifiers, which will power electrolysers to produce up to 11,000 tonnes of green hydrogen annually.
   

Petroleum Refining Hydrogen Market Analysis

• The global market for petroleum refining hydrogen was valued at USD 125.8 billion, USD 133.1 billion and USD 139.6 billion in 2022, 2023 and 2024 respectively. The industry is segmented into green, blue, and grey based on type.
   
• The green hydrogen segment is projected to surpass more than USD 92.2 billion by 2034. Rising stringent environmental regulations and global commitments to reduce carbon emissions are compelling refineries to seek cleaner alternatives, thereby propelling green fuel demand. For instance, in February 2025, TotalEnergies joined forces with Air Liquide, on two green hydrogen projects in the Netherlands as part of its strategy to decarbonize hydrogen production in its European refineries by 2030. The projects will produce 45,000 tons of green hydrogen annually using renewable power, primarily from the OranjeWind offshore wind farm. This initiative will reduce CO2 emissions by 450,000 tons across refineries in Belgium and the Netherlands, aligning with EU renewable energy objectives.
   
• Furthermore, growing pressure on refineries to enhance their sustainability profiles and contribute to national and international targets for carbon reduction is complementing the product adoption. Growing dependence on fossil fuels for hydrogen production exposes refineries to price volatility and geopolitical risks, creating demand for sustainable and locally producible alternatives, enhancing supply chain stability and reducing reliance on imported energy sources thereby fostering industry growth.
   
• The blue hydrogen segment is set to grow at a CAGR of over 15.3% through 2034 due to significantly reduced CO2 emissions compared to grey hydrogen, helping refineries to lower their carbon footprint while maintaining existing infrastructure. Companies are at the forefront boosting product adoption. For instance, in February 2022, Reliance Industries planned to repurpose its gasification assets at the world’s largest refinery in Jamnagar to become a major blue hydrogen producer. With a refining capacity of 68.2 million tonnes per year, the facility also has the potential to generate 1.06 million tonnes of hydrogen annually.
   
• The grey hydrogen segment is expected to reach more than USD 285 billion by 2034, on account of their production affordability and established infrastructure, requiring no major modifications to their existing processes. Additionally, grey hydrogen wide application in hydrotreating and hydrocracking to remove sulfur from crude oil and produce low-sulfur fuels that comply with environmental regulations such as IMO 2020 and Euro 6 standards will augment the business trend.

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• North America holds 9.4% of the market share in 2024, which is expected to improve further by 2034. The U.S. petroleum refining hydrogen market was valued at USD 8.8 billion, 9.6 billion, and 10.3 billion in 2022, 2023 and 2024, respectively.
   
• In the U.S., rising federal and state-level commitments to carbon neutrality and climate goals are driving the adoption of green fuel adoption in refineries. Growing investments in technological innovation in hydrogen production and utilization and coupled with rising research and development efforts, supported by public and private sector investments in advancing electrolysis technologies and reducing product cost are additional factors fostering business growth.
   
• Asia Pacific petroleum refining hydrogen market is anticipated to cross over USD 318 billion by 2034. Rapid industrialization and urbanization, driving up energy demand, including for refined petroleum products is boosting the industry landscape. Rising companies are investing heavily in boosting clean energy adoption. For instance, in July 2023, Sinopec successfully launched China’s first 10,000-ton green hydrogen demonstration project, supplying hydrogen to local petroleum refineries. Hydrogen is being used as a cleaner alternative to natural gas, reducing reliance on fossil fuels in refining operations.
   
• Furthermore, rising government commitment toward carbon emissions reduction, and adoption of green solution to decarbonize energy-intensive sectors is impacting business growth. Increasing regional diversification of energy sources to enhance energy security and reduce reliance on imported fossil fuels coupled with increasing government financial incentives, subsidies, and regulatory support to promote green hydrogen adoption will additionally drive the product penetration.
   
• The Europe petroleum refining hydrogen market is projected to grow at a CAGR of 4.2% through 2034. Rising EU policies such as the Fit for 55 package and Renewable Energy Directive (RED II) mandate lower carbon emissions in industrial processes, which will improve the market growth. Furthermore, this encourages refineries to integrate low-carbon hydrogen to comply with these standards leading to uplift the product growth. For instance, in May 2023, Neste, targeting carbon-neutral production by 2035, is setting up a 120 MW electrolyzer at its Porvoo refinery in Finland to generate renewable (green) hydrogen.
   

Petroleum Refining Hydrogen Market Share

• The top five players, BP Plc, ExxonMobil, PetroChina, Reliance Industries Ltd and Saudi Aramco hold a 44.9% share in the petroleum refining hydrogen industry. These players are focusing on developing and deploying green hydrogen production technologies such as electrolysis powered by renewable energy sources.
   
• Businesses are establishing strategic alliances with technology suppliers, research institutes, and developers of renewable energy to aid in the expansion of green hydrogen initiatives. Furthermore, to increase resilience and satisfy different consumer requests for sustainable solutions, new entrants are diversifying their sources of hydrogen supply by combining green hydrogen with conventional techniques.
   
• Furthermore, firms such as Air Liquide, Linde, and Air Products are collaborating with refiners to develop hydrogen supply infrastructure. For instance, TotalEnergies and Air Liquide are working together in Europe to integrate renewable hydrogen into refining operations.
   

Petroleum Refining Hydrogen Market Companies

• BP's operating cash flow hit USD 27.3 billion in 2024. The company increased its dividends by 10%, carried out USD 7 billion in share buybacks, and later initiated another USD 1.75 billion buyback program. The firm is also widening its footprint in the hydrogen industry with an emphasis on producing low carbon hydrogen and forming partnership alliances directed towards the achievement of worldwide decarbonization objectives.
   
• ExxonMobil's earnings for the fourth quarter of 2024 were reported to be USD 7.6 billion. The total earnings for the full year of 2024 summed up to USD 33.7 billion USD. The company plans to construct a blue hydrogen facility in Baytown, Texas, with a production capacity of 1 Bcf/d. The project reduces refinery emissions by integrating carbon capture and storage technology, which captures 10 million metric tons of CO2 sent into the atmosphere annually.
   

Eminent players operating in the petroleum refining hydrogen market are:

• BP
• ExxonMobil
• Chevron Corporation
• Indian Oil Corporation
• Messer Group
• Nel Hydrogen
• PetroChina
• Reliance Industries
• Saudi Aramco
• Shell Global
   

Petroleum Refining Hydrogen Industry News:

• In June 2023, TotalEnergies collaborated with VNG, a German gas supplier, to employ green hydrogen for its Leuna refinery in Germany. Trial operations will start in early 2025, with full transport of green hydrogen expected later that year.
   
• In February 2023, the Indian Oil Corporation announced a goal of operating green hydrogen plants at all of their refineries by 2047. This effort is a part of a strategy exceeding USD 2,400 million that aims to reach net-zero carbon emissions through the development of green hydrogen plants, efficiency improvements, renewable energy resources expansion, and adoption of alternate fuels.
   
• In January 2022, at its Jorhat oilfield in Assam, Oil India Ltd is setting up a 100 kW unit dedicated to green hydrogen production. Situated at Pump Station-3, this facility will harness anion exchange membrane (AEM) technology for its hydrogen production. As per the Director's statement, the produced hydrogen will be mixed with natural gas, leveraging the company's current infrastructure.
   

This petroleum refining hydrogen market research report includes an in-depth coverage of the industry with estimates & forecast in terms of revenue and volume in “(USD Billion & MT)” from 2021 to 2032, for the following segments:

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Market, By Type

• Grey
• Blue
• Green

The above information has been provided for the following regions and countries:

• North America
  • U.S.
  • Canada
  • Mexico 
• Europe
  • Germany
  • UK
  • France
  • Italy
  • Netherlands
  • Russia
• Asia Pacific
  • China
  • Japan
  • India
  • Australia
• Middle East & Africa
  • Saudi Arabia
  • Iran
  • UAE
  • South Africa
  • Qatar
  • Kuwait
• Latin America
  • Chile
  • Brazil
  • Argentina