Primo Chemicals Limited, North India's largest caustic soda producer, has entered into a five-year commercial agreement to supply hydrogen gas to state-owned fertilizer manufacturer National Fertilizers Limited (NFL).

The agreement covers the delivery of 1,000 to 2,500 normal cubic meters Nm3 of hydrogen per hour through a dedicated pipeline. The deal runs for an initial five-year term from the effective date and includes a provision for future extension upon mutual agreement.

Hydrogen is generated as a by-product alongside caustic soda and chlorine during Primo's chlor-alkali manufacturing process. By routing the gas directly to NFL via a dedicated pipeline, both companies secure a reliable and efficient supply chain. For Primo, the partnership transforms a manufacturing by-product into an independent, steady revenue stream expected to boost both its top and bottom lines while diversifying its customer base beyond core chlor-alkali products.

"Our agreement with NFL is an important milestone for Primo Chemicals," the company stated regarding the partnership. "Hydrogen will add an independent revenue stream directly through a long-term partnership with a respected public-sector company. It shows how we are getting full value from everything our plant produces, and we are confident it will create lasting value for our shareholders, customers, and employees."

The NFL deal builds on Primo Chemicals' five-decade manufacturing presence in Punjab. It runs alongside the company's recent execution of agreements for an approximately 50 MW (49.998 MW AC) captive solar power project. Together, these initiatives anchor Primo's next phase of growth by maximizing product value, lowering energy costs, reducing carbon emissions, and strengthening its role as a key supplier to Indian industry.