INOX Air Products (INOXAP) has signed a 20-year Build-Own-Operate agreement with Premier Energies to install a cryogenic Air Separation Unit in Naidupeta, Andhra Pradesh. This unit will supply 7000 nm³/h of ultra-high purity Nitrogen and 250 nm³/h of Oxygen for Premier Energies’ solar cell manufacturing, with commissioning slated (NTPC) for next year. Both companies emphasize the agreement’s role in enhancing India’s green energy manufacturing capabilities and supporting the clean energy transition The recent landmark agreement between INOX Air Products (INOXAP) and Premier Energies a 20-year on-site gas supply contract for Premier’s solar-cell manufacturing facility in Naidupeta.
Andhra Pradesh represents a pivotal step in India’s industrial-gas and solar manufacturing ecosystem. The pact requires INOXAP to design, build and operate a cryogenic air-separation unit (ASU) dedicated to supplying ultra-high-purity gases specifically, 7,000 nm³/h of 5N-grade nitrogen and 250 nm³/h of 6N-grade oxygen, alongside other liquid gases to Premier’s greenfield solar-cell plant From a strategic-supply viewpoint, this contract aligns INOXAP’s expertise in industrial, medical and electronic gases with the fast-growing needs of domestic solar manufacturing. India’s drive to ramp up solar-cell capacity including high-purity gas demand for processes like wafer cleaning, diffusion.
Dedicated To The Solar-Cell Sector Delving
Passivation and module encapsulation makes this agreement timely, ensuring Premier has a long-term, stable on-site gas supply. INOXAP’s role is therefore not just a supplier, but a partner enabling industrial-scale manufacturing of high-efficiency solar cells. In its statement, INOXAP highlighted this ASU as India’s first integrated unit dedicated to the solar-cell sector Delving into the technical specifics, the gas supply infrastructure is considerable. The ASU will handle 7,000 nm³/h of nitrogen at 99.999% purity (5N grade) and 250 nm³/h of oxygen at 99.9999% purity (6N grade). These high‐purity gases are critical to solar-cell manufacturing.
Nitrogen may serve as a protective inert for atmospheres during wafer deposition, and ultra-pure oxygen may be needed for oxidation steps, plasma treatments or other high-tech processes. Additional liquid gas supplies are also part of the deal. The ASU’s commissioning is expected to take place next year, which means Premier can plan its production ramp-up more confidently From a business-development perspective, the long-term nature of the agreement (20 years) is significant for both parties. For INOXAP, it locks in a major customer in the fast-growing solar-manufacturing sector, enabling capital investment in the ASU with assured pay‐back over two decades.
Build-Own-Operate
For Premier Energies, it secures a dedicated supply of critical gases with predictable pricing risks, fewer supply-chain disruptions, and on-site infrastructure that reduces logistics and downtime. Because the ASU is on the customer site, the arrangement is a Build-Own-Operate (BOO) model: INOXAP builds the unit, owns and operates it, while Premier’s facility benefits from a turn-key gas supply. Premier’s chairman, Surender Pal Singh Saluda, noted INOXAP remains the preferred partner for this collaboration In the broader context of India’s energy transition and manufacturing push, this agreement carries additional symbolism. India has been striving to boost.
Its local manufacturing of solar cells and modules, reduce import dependency, and address supply-chain vulnerabilities. With increasingly stringent global supply chains, high-purity industrial gases become a strategic input. By establishing this dedicated ASU, Premier and INOXAP contribute to strengthening the domestic solar value chain: from wafer manufacturing through module assembly, the availability of on-site gases reduces cost and risk. INOXAP’s statement underscored the contribution of this agreement to India’s solar ecosystem and the clean-energy transition It is also worth noting the historical trajectory of collaboration between the two companies.
ASU, Premier And INOXAP Contribute
This is not a first‐time engagement; INOXAP already has a four-year association with Premier Energies through on-site contracts supplying industrial gases from cryogenic plants. Already at Premier’s Hyderabad facility, INOXAP has installed smaller nitrogen generators (2×750 nm³/h and 1×1000 nm³/h) and supplies electronic‐grade gases for Premier’s 3 GW solar-PV cells and future 4 GW capacity. This new deal thus builds on that foundation, scaling up significantly for a large greenfield plant Financially and operationally, the long‐duration contract offers benefits and obligations. From INOXAP’s standpoint, the BOO model implies capital expenditures, maintenance.
Commitments, and long‐term performance guarantees. From Premier’s perspective, the company gains the advantage of predictable gas cost, on‐site logistics savings, and dedicated gas production capacity aligned with its manufacturing roadmap. Such arrangements mitigate risks linked to third-party gas deliveries, supply disruptions, or purity deviations factors that are critical in precision manufacturing like solar cells. Moreover, the partnership underscores that gas supply is no longer a peripheral commodity but a strategic enabler in high-tech manufacturing ecosystems Looking ahead, this agreement could have ripple effects across multiple dimensions.
For the solar-cell manufacturing industry in India, it sets a precedent: onsite dedicated gas-production units may become standard for large-scale plants, thereby raising entry-barriers for smaller players but improving quality, reliability and scale. For industrial‐gas companies, this demonstrates a growth avenue beyond traditional sectors (steel, chemicals, medical) into renewable manufacturing supply chains. From a policy perspective, the government’s manufacturing push (such as through Production-Linked Incentives or PLI schemes) may be supported by infrastructure deals like this one, which de-risk supply chains and boost “Make in India” narratives.
Considerations Commissioning A Cryogenic
Q1. What is the duration of the INOXAP and Premier Energies gas supply agreement?
The agreement is for a long-term period of 20 years.
Q2. Which gases will INOXAP supply to Premier Energies?
INOXAP will provide high-purity industrial gases including nitrogen, hydrogen, and other specialty gases.
Q3. How does this agreement support India’s renewable energy mission?
It enhances solar manufacturing capacity, supports clean production, and reduces reliance on imports.
Q4. Where is the Premier Energies manufacturing plant located?
The manufacturing plant is located in Hyderabad, Telangana.
Q5. What is the environmental impact of this partnership?
It promotes low-carbon, sustainable manufacturing aligned with India’s net-zero goals.
