Zurich Insurance Group and Aon have partnered to launch a clean energy insurance facility, providing coverage globally for blue and green hydrogen projects with capital expenditures of up to US$250 million.
This initiative, with Zurich as the lead insurer and Aon as the exclusive broker, aims to accelerate the development of clean hydrogen projects.
The new multi-line clean energy insurance facility offers coverage through a single integrated policy, encompassing construction, delay in start-up, operational cover, business interruption, marine cargo limits, and third-party liability.
It also includes coverage for carbon capture, utilisation, and storage technologies, providing businesses with a complete suite of solutions across the entire value chain of hydrogen production.
Over the past two years, Zurich and Aon have conducted research and engaged with customers to gain insights about the specific needs and challenges of developing blue and green hydrogen projects.
Blue hydrogen is derived from natural gas and uses carbon capture technologies to reduce its carbon intensity; green hydrogen is produced by splitting water into hydrogen and oxygen via electrolysis powered by renewable energy.
Sierra Signorelli, CEO of Commercial Insurance at Zurich, comments: “Insurance is a key enabler to facilitate the net-zero transition, providing protection as well as risk expertise. Clean hydrogen has immense potential as an eco-friendly alternative to fossil fuels, and we strongly believe it can play a critical role in the energy transition.”
Joseph Peiser, Global CEO of Commercial Risk at Aon, adds: “Many developers and their capital providers have found it challenging to de-risk and secure adequate insurance coverage for the various phases of global hydrogen projects.
“This new solution caters to their unique needs, providing comprehensive coverage and addressing the complex risks associated with hydrogen projects across the entire project life cycle.”
