Oil refineries are large hydrogen gas producers and consumers. Hydrogen plays a pivotal role in many refining operations, from hydrocracking—heavy gas reduction and gasoils to lower molecular weight components—to gas stream treatment, to catalytic reforming. In catalytic reforming, the gas is also used to prevent carbon from reacting with the catalyst to maintain the production of lighter hydrocarbons while extending the catalyst's life. Not surprisingly, refineries use large volumes of hydrogen that is either produced onsite or purchased from hydrogen production facilities.

Demand for hydrogen is growing. Changes in gasoline and diesel fuel specifications, prompted by environmental legislation, have led to increased hydrogen use to improve gasoline grade. However, higher crude oil prices have enhanced the commercial prospects of heavier crudes, requiring new investments in conversion processes and more extensive hydrotreating and hydrocracking applications.