Refining industry increasingly turns to biomass-derived hydrogen to cut carbon emissions, with Asia leading rapid adoption and technological innovations enabling integration with existing infrastructure.
Refineries are increasingly turning to biomass-based hydrogen as a pragmatic pathway to cut carbon intensity while preserving the high-hydrogen demand of modern hydroprocessing units. According to the report by Fact.MR, technologies that convert agricultural residues, forestry biomass and energy crops into high‑purity hydrogen are gaining traction because they can be integrated with existing refinery hydrogen networks and support production of lower‑carbon fuels such as renewable diesel and sustainable aviation fuel.
Gasification remains the dominant route, prized for its maturity, scalability and compatibility with refinery infrastructure, the Fact.MR analysis states. Advances in catalytic and pyrolysis-assisted processes, modular skid‑mounted units and digital twins are improving feedstock flexibility and operational predictability, while hybrid configurations that co‑process biomass with waste plastics or fossil feedstocks are emerging to balance cost and output. The Fact.MR forecast projects the global refinery biomass hydrogen technology market to expand at a compound annual growth rate (CAGR) of 5.4% from 2025 to 2035, with China the fastest-growing national market (CAGR 7.3%), followed by India and several European markets.
The scale of the challenge and opportunity is large. Industry consultancy Wood Mackenzie estimates potential low‑carbon hydrogen demand from the global refining sector could reach about 50 million tonnes per annum (Mtpa) by 2050, noting that refining was already one of the largest industrial hydrogen consumers at roughly 32 Mtpa in 2020. Hydrotreating and hydrocracking account for more than 90% of refinery hydrogen use, and while a substantial share of that need is currently met by hydrogen by‑products from catalytic reformers and petrochemical crackers, shortfalls are met by on‑purpose production from fossil feedstocks such as steam methane reforming (SMR) and coal gasification.
That dependence on fossil‑derived hydrogen remains significant. Market reporting highlights that SMR continues to underpin a large portion of global hydrogen production, estimates put it at about 75% of the market, and grey hydrogen produced from natural gas still represents the majority of supply. As governments tighten decarbonisation targets, refiners face both regulatory pressure and commercial incentives to diversify hydrogen sources toward green, blue and biomass‑derived options.
Regional dynamics favour biomass hydrogen uptake in Asia. Multiple market studies place Asia Pacific at the centre of near‑term hydrogen growth: one market report shows the region holding roughly 45% of the petroleum refining hydrogen market in 2024, driven by refinery modernisation, petrochemical integration and policy support in China and India. Fact.MR singles out China as the market leader for refinery biomass hydrogen deployment, supported by national hydrogen strategies and abundant biomass resources. Europe, Japan and parts of North America are pursuing adoption too, motivated by strict emissions standards, low‑carbon fuel policies and corporate net‑zero commitments.
For refining operators and project developers, the economics and logistics remain pivotal. Fact.MR and other industry research identify high capital expenditure, complex technology integration and the difficulty of securing long‑term, cost‑stable biomass feedstock contracts as key restraints. Lifecycle carbon accounting and certification of biomass feedstocks are essential to demonstrate genuine emissions reductions, adding administrative and verification costs. Wood Mackenzie and other analysts also caution that a substantial portion of refinery hydrogen demand is unlikely to be replaced because of the volume already supplied as by‑product, meaning on‑purpose low‑carbon production will need to be targeted where it can displace the most carbon‑intensive inputs.
Technology and market responses are already visible. Major industrial gas and catalyst companies named in the Fact.MR overview , Air Liquide, Linde plc, Shell Catalysts & Technologies, Haldor Topsoe and Johnson Matthey , are investing in modular systems, gas cleaning and hybrid processing. Energy and engineering players and electrolyser specialists are also entering the mix: market commentary points to accelerating deployment of electrolysis capacity for green hydrogen and to the activity of companies such as ITM Power in scaling containerised and multi‑megawatt electrolyser platforms, illustrating how electrolytic and biomass routes can become complementary elements of refinery decarbonisation strategies.
Policy and market instruments will influence pace of adoption. Carbon pricing, low‑carbon fuel standards, subsidies and clean hydrogen incentives are making biomass hydrogen more financially attractive in many jurisdictions, while corporate net‑zero targets and stakeholder pressure drive asset owners to future‑proof plants. Nevertheless, refiners must weigh retrofit complexity, operability and life‑cycle emissions verification when choosing pathways.
For industrial decarbonisation professionals, the practical takeaway is that biomass hydrogen is maturing from concept to project stage in regions with both policy support and feedstock availability. It is unlikely to be a single, universal solution; instead, it will sit alongside electrolysis, blue hydrogen and efficiency measures as part of integrated refinery decarbonisation portfolios. Projects that combine technological robustness, transparent lifecycle accounting and secure feedstock logistics are best positioned to translate the theoretical emissions benefits of biomass hydrogen into credible, bankable refiners’ decarbonisation outcomes.
- https://blog.factmr.com/refinery-biomass-hydrogen-tech-market-driving-decarbonization-in-the-petroleum-refining-sector/ – Please view link – unable to able to access data
- https://www.factmr.com/report/refinery-biomass-hydrogen-tech-market – The global refinery biomass hydrogen technology market is projected to grow at a compound annual growth rate (CAGR) of 5.4% from 2025 to 2035. China leads the market with a CAGR of 7.3%, followed by India at 6.8%, Germany at 6.2%, the UK at 5.1%, and the USA at 4.6%. Growth is driven by rising hydrogen consumption for hydrocracking, hydrotreating, and desulfurization to meet stringent fuel quality and emission standards. Asia, particularly China and India, exhibits rapid expansion due to refinery upgrades, crude slate diversification, and increasing demand for low-sulfur fuels. Europe and North America focus on cleaner fuel production, chemical feedstock applications, and regulatory compliance. Investments in hydrogen generation, storage, and distribution infrastructure further support consistent market growth globally.
- https://www.hydrocarbonengineering.com/refining/14062022/wood-mackenzie-reports-growing-demand-for-low-carbon-hydrogen-in-refining/ – Wood Mackenzie reports that potential low-carbon (green or blue) hydrogen demand from the global refining sector could reach 50 million tonnes per annum (Mtpa) by 2050. Oil refining is one of the largest markets for hydrogen, accounting for about 32 Mtpa or 30–35% of global hydrogen demand in 2020. Hydrotreating and hydrocracking are the major refinery processes, consuming over 90% of hydrogen in the refining sector, and they are used to reduce sulfur from finished products and to increase yield of transport fuels, respectively. However, more than 65% of hydrogen demand in refining is met by hydrogen supplied as a byproduct from catalytic reformers and ethylene crackers; this is unlikely to be replaced by low-carbon hydrogen. Any hydrogen shortfall is met by on-purpose production from gas-based steam methane reforming (grey) and coal (brown), together accounting for about 32% of refinery hydrogen demand.
- https://www.precedenceresearch.com/petroleum-refining-hydrogen-market – The Asia Pacific petroleum refining hydrogen market size was exhibited at USD 62.84 billion in 2024 and is projected to be worth around USD 208.90 billion by 2034, growing at a CAGR of 12.76% from 2025 to 2034. Asia Pacific dominated the petroleum refining hydrogen market by holding a 45% share in 2024, as refiners expanded throughput to meet demand for fuels in the local region, improve product quality, and shift to export markets, while governments are also backing hydrogen production and electrification of industry. Increasing throughput at refineries in South and East Asia and plans to develop production and low-emissions hydrogen projects is leading to incremental hydrogen demand for hydro processing. Modernization of China’s refineries increases in petrochemical integration within their refineries, and strategic hydrogen projects makes China the de-facto growth engine large refineries will simply require more hydrogen to meet stricter fuel specifications and to upgrade heavier crudes.
- https://www.altenergymag.com/news/2025/10/07/petroleum-refining-hydrogen-market-the-next-frontier-in-clean-energy-integration/46202 – In 2024, Asia Pacific dominated the global market with a commanding 45% share, while North America emerged as the fastest-growing region. The steam methane reforming (SMR) method remains the backbone of hydrogen production, representing 75% of the market, though green hydrogen via electrolysis is poised to be the next growth engine for sustainable refining. Hydrogen is the unsung hero of petroleum refining. It’s the element that removes sulfur, breaks down heavy hydrocarbons, and produces cleaner fuels that comply with international standards like Euro VI and IMO 2020. Yet, the very production of hydrogen has posed sustainability questions—most of it is derived from natural gas, resulting in grey hydrogen, which accounts for 80% of the current supply. As nations tighten decarbonization targets, refiners are now at the intersection of efficiency and emission reduction, seeking pathways to replace grey hydrogen with green and blue alternatives. According to the International Energy Agency (IEA), refiners continue to be the largest industrial consumers of hydrogen, using it extensively to process heavier crude oils and meet advanced fuel specifications. This dominance underscores why hydrogen decarbonization isn’t just an environmental pursuit—it’s a strategic necessity for the refining sector’s survival.
- https://www.marketresearchfuture.com/reports/petroleum-refinery-hydrogen-market-29156 – North America is witnessing robust growth in the petroleum refinery hydrogen market, driven by stringent environmental regulations and a shift towards cleaner fuels. The U.S. holds the largest market share at approximately 70%, followed by Canada at around 15%. Regulatory catalysts, such as the Clean Air Act, are propelling investments in hydrogen production technologies, enhancing demand across the region. The competitive landscape is dominated by key players like Air Products, ExxonMobil, and Chevron, which are investing heavily in hydrogen infrastructure. The U.S. is leading in technological advancements, while Canada is focusing on sustainable hydrogen production. This dynamic environment is fostering innovation and collaboration among industry stakeholders, positioning North America as a leader in the hydrogen market.
- https://en.wikipedia.org/wiki/ITM_Power – ITM Power is a UK-based company specializing in the design and manufacture of integrated hydrogen energy solutions. In 2024, ITM launched NEPTUNE V, a containerized 5 MW electrolyser plant, and secured its first contract in November for a 15 MW unit to be installed in Gutroff, Germany. In March, ITM completed the installation of a 2 MW NEPTUNE electrolyser at Tokyo Gas Co Ltd’s Yokohama Techno Station with Sumitomo Corporation. Hygen appointed ITM as a preferred supplier of PEM electrolysers within the UK and across wider Europe. Yara’s 24 MW hydrogen plant at Herøya Industrial Park, which utilizes ITM’s TRIDENT stack platforms, to produce green ammonia was officially inaugurated in June. The REFHYNE I project concluded in June and followed with an announcement of a 100 MW contract being signed with Shell for REFHYNE II. ITM announced the results of research into Iridium reduction, by validating an additional 40% iridium loading reduction whilst maintaining stack performance and longevity.
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emerged. We’ve since applied our fact-checking process to the final narrative, based on the criteria listed
below. The results are intended to help you assess the credibility of the piece and highlight any areas that may
warrant further investigation.
Freshness check
Score:
10
Notes:
✅ The narrative is dated January 13, 2026, indicating recent publication. No evidence of prior publication or recycled content was found. The report appears to be original and up-to-date.
Quotes check
Score:
10
Notes:
✅ No direct quotes were identified in the narrative. The content is presented in a general descriptive manner without attributed statements.
Source reliability
Score:
8
Notes:
⚠️ The narrative originates from Fact.MR, a market research firm. While Fact.MR provides detailed market analyses, it’s important to note that their reports are often based on proprietary research and may not always be independently verified. This warrants cautious interpretation of the data presented.
Plausability check
Score:
9
Notes:
✅ The claims regarding the adoption of biomass-based hydrogen technologies in refineries align with current industry trends and technological advancements. The emphasis on gasification-based hydrogen production and regional dynamics, particularly in China, is consistent with known developments in the sector. However, the specific market projections and growth rates should be interpreted with caution due to the proprietary nature of the data.
Overall assessment
Verdict (FAIL, OPEN, PASS): PASS
Confidence (LOW, MEDIUM, HIGH): MEDIUM
Summary:
✅ The narrative is recent and original, with no evidence of recycled content. While the information aligns with current industry trends, the reliance on proprietary data from Fact.MR necessitates cautious interpretation. The absence of direct quotes and the open accessibility of the content are positive indicators. However, the proprietary nature of the data and the lack of independent verification suggest a medium level of confidence in the overall assessment.
