Industrial hydrogen gas plays a significant role in modern industry, in sectors ranging from chemical processing to electronics to food processing.

Approximately 90 per cent of hydrogen used in industrial applications is produced and consumed on-site in large facilities, including oil refineries and ammonia synthesis and methanol synthesis plants. Merchant delivery of either compressed or liquid hydrogen accounts for the remaining 10 per cent of the hydrogen market.

In terms of production, approximately 80 per cent of industrial hydrogen is generated from natural gas and other hydrocarbons through steam methane reforming (SMR). SMR systems typically include a reformer to produce a crude hydrogen stream and a gas purification unit to purify the hydrogen. The remaining 20 per cent of industrial hydrogen is recovered from hydrogen-containing off-gas streams in oil refineries and chemical plants. Processes such as electrolysis and ammonia dissociation are also used for very small-scale applications.

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