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Hydrogen for Oil refining

Hydrogen is used to process crude oil into refined fuels, such as gasoline and diesel, and for removing contaminants, such as sulphur, from these fuels. Total hydrogen consumption in oil refineries is estimated at 12.4 billion standard cubic feet per day, which equates to an average hydrogen consumption of 100-200 standard cubic feet per barrel of oil processed.  Hydrogen consumption in the oil refining industry grew at a compound annual growth rate of 4% from 2000 to 2003, and growth in consumption is expected to increase to between 5% and 10% through to 2010 [Oil & Gas Journal, CryoGas International].  The principal drivers of this growth in refinery hydrogen demand are:

  • Low sulphur in diesel fuel regulations - hydrogen is used in refineries to remove
    sulphur from fuels such as diesel.
  • Increased consumption of low quality 'heavy' crude oil, which requires more hydrogen to refine.
  • Increased oil consumption in developing economies such as China and India.

Approximately 75% of hydrogen currently consumed worldwide by oil refineries is supplied by large hydrogen plants that generate hydrogen from natural gas or other hydrocarbon fuels, with the balance being recovered from hydrogen-containing streams generated in the refinery process. PSA technology is used in both hydrogen generation plants and for hydrogen recovery.


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Hydrogen for Other Industrial Uses

Hydrogen is used in a range of other industries, including chemical production, metal refining, food processing and electronics manufacturing. Hydrogen is either delivered to customers in these industries as compressed or liquid hydrogen, or generated on-site from water using a process known as electrolysis or from natural gas using a process call reforming. In certain applications, there is a gradual shift towards on-site generation to replace delivered compressed or liquid hydrogen, largely based on the lower cost of new on-site hydrogen generation technologies when compared to delivered hydrogen. Xebec's PSA systems are used in on-site reforming systems to increase the purity of the hydrogen produced to the levels demanded by certain of the consuming industries.

Xebec currently sells its first generation H-3100 and H-3200 PSA products into the industrial hydrogen market. Capital cost reduction is critical to the continued expansion of the on-site hydrogen generation market using small scale reforming technology, including cost reduction of the hydrogen purification equipment included in these systems. Xebec's PSA systems offer a cost advantage over conventional PSA systems in the small scale on-site hydrogen generation market. In addition, the modular, skid mounted design of the our PSA systems allows customers to integrate the product into their packaged hydrogen generation systems, avoiding the need for costly field erection of larger PSA equipment.


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