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Refinery Electrification Market size is speculated to showcase remarkable growth from 2023 to 2032. The refinery electrification process is becoming a popular choice for replacing conventional oil refineries using fossil fuel for energy generation with electricity driven 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 across the globe.
The electrification process offers several benefits, such as a reduction in greenhouse gas emissions, high energy efficiency, lower operating costs, and enhanced competitive outlook in rapidly growing decarbonized economies. 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. The increasing impact of CO2 emissions is thus fueling industry growth.
Recently, during the Russia-Ukraine war, the industry witnessed slow progression due to disruptions in 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, which led to a decline in product adoption. 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 industry growth.
In terms of application, the refinery electrification market is classified into power distribution, lighting, and heating & cooling systems. The power distribution segment is anticipated to hold the lion’s share in the market through 2032 owing to the shifting preference of businesses towards innovative technologies to improve their 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. Additionally, power distribution grids supply electricity in different areas including production units, administrative offices, and residential quarters, which is benefitting segment outlook.
The refinery electrification market is categorized in terms of source into solar, offshore wind, and hydropower. The solar segment is estimated to amass 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. In June 2022, Schneider Electric SE, a French energy management firm, released two new solar power solutions to provide electricity in areas with limited access.
Asia Pacific refinery electrification market 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 progression.
Top companies operating in the global refinery electrification market are ABB Ltd., Siemens AG, 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, Larsen & Toubro Limited, State Grid Corporation of China, 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. For instance, 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.