B.O.O Business Modell (on-site supply contracts)

Build, own & operate (BOO) is the typical model of an industrial gas company, also known as on-site supply model, usually for Air Separation Plants.

  • Basic and detail engineering, design, procurement and construction as state-of-the-art dedicated to customer needs;
  • Engineering services during design, construction, erection and operation;
  • Erection, supervision of erection;
  • Start-up and commissioning;
  • Plant operation, optimisation and trouble-shooting;
  • Training and Development of O&M personnel;
  • Maintenance and repair including auxiliary material;
  • Insurance of plant and personnel.

The alternatives


(build own & transfer)


(build own operate & transfer)


(build own & operate)

Typical projects:

Cryogenic Air Separation Units (ASU)
PSA Plants  (Oxygen, Nitrogen, H2)
Utility Centers  (compressed air systems, gas compressor plants)

The BOT vs BOOT model

  • The build, operate & transfer (BOT) model offers financing of large projects, typically for providing of utilities such as air gases, compressed air systems, power, cooling water, etc. to the client.
  • BOT projects are normally large-scale, projects that would otherwise be financed, built and operated solely by the client.
  • For a build, operate & transfer (BOT) contract, a private company (e.g. Luftkryo) comes to an agreement with the client to finance, build and operate a project for a period of 20-30 years, hoping to earn a profit.
  • During or after that period, the project is returned (transfered) to the client that originally signed the agreement and granted a concession to the private company.
  • An alternative to the basic BOT model is known as the build, own, operate & transfer (BOOT) model.
  • Under (BOOT) contracts, the company owns the project during the entire agreed project period.
  • After that period, the project is returned (transfered) to the client.

BOO supply advantages (Examples)

Operation & Maintenance

  • Operational best practices
  • Global support group for operation
  • Continuous experience exchange between operation/ plant design
  • Direct access to plant manufacturer during operation

Backup Supply

  • Access to other liquid sources
  • Liquid production may add degree of flexibility
  • Integration of multiple customers increases operational flexibility

Spare Parts

  • Experience on components reliability and spare parts inventory
  • Global spare part sourcing

Commercial Aspects

  • No capex expenditure of customer
  • Depending on case: off balance solution
  • Predictable long term cost structure (15 to 20 yr contract)
  • Realisation of synergies

BOO Alternative 1: “Stand Alone”


Luftkryo’s technology, project execution & operational expertise
Operation at process and cost optimum

BOO Alternative 2: Multi customers


Luftkryo technology, project execution & operational expertise
Operation at process and
Economies of scale (cost, feedstock, utilities)
Lower capital employed

BOO Alternative 3: Merchant market synergies


Luftkryo technology, project & operational expertise
Operation at process and Optimum Cost
Economies of scale and process synergies (co-production)
Less Capital expenditure