The global petroleum refining hydrogen market is entering a decade of transformation, driven by stricter emission norms and the global shift towards cleaner fuels. Valued at USD 139.64 billion in 2024, the market is projected to reach USD 459.13 billion by 2034, growing at a compound annual growth rate (CAGR) of 12.64 per cent.

This expansion underscores the rising importance of hydrogen in refining operations. As refineries worldwide modernise to meet ultra-low sulphur fuel standards and evolving environmental mandates, hydrogen has become a critical enabler of cleaner combustion. It plays a central role in hydrocracking, hydrotreating and desulphurisation, ensuring refined fuels comply with stringent global benchmarks.

In 2024, the Asia-Pacific region accounted for a dominant 45 per cent share of the market, while North America emerged as the fastest-growing region. The steam methane reforming (SMR) process continues to dominate hydrogen production, representing 75 per cent of total output. However, green hydrogen via electrolysis is gaining momentum as the next frontier for sustainable refining.

Hydrogen remains indispensable to refinery operations — removing sulphur, breaking down heavy hydrocarbons and ensuring compliance with standards such as Euro VI and IMO 2020. However, the sustainability of hydrogen production itself remains a concern, with grey hydrogen, derived from natural gas, still comprising 80 per cent of current supply.

As countries intensify decarbonisation efforts, refiners are under growing pressure to replace grey hydrogen with green and blue alternatives. According to the International Energy Agency (IEA), the refining sector remains the largest industrial consumer of hydrogen, particularly for processing heavier crude oils and producing cleaner fuels.

The convergence of artificial intelligence and hydrogen refining marks a new era of operational innovation. Companies such as Honeywell have launched AI/ML-based systems like Protonium to enhance electrolyser efficiency and hydrogen management, already deployed at the U.S. Mid-Atlantic Clean Hydrogen Hub.

In Europe, TotalEnergies is using AI-driven digital twins for smarter process control and improved utilisation of green hydrogen, while projects such as AceWGS are accelerating catalyst development and conversion efficiency. AI is now reshaping hydrogen refining economics — reducing costs, predicting maintenance, cutting emissions and improving output quality.

Between 2025 and 2034, global hydrogen demand is set to rise sharply, with refineries remaining the largest consumers. Policy incentives such as the U.S. 45V Clean Hydrogen Production Tax Credit and similar initiatives in Europe and Asia are driving the transition to low-emission hydrogen, even as cost competitiveness remains a key challenge.

Source: 

https://www.altenergymag.com/news/2025/10/07/petroleum-refining-hydrogen-market-the-next-frontier-in-clean-energy-integration/46202