Zurich and Aon have joined forces to introduce a pioneering clean energy insurance facility aimed at providing extensive coverage for blue and green hydrogen projects globally, with capital expenditures reaching up to $250m.
The partnership is driven by the need to accelerate the development of clean hydrogen projects, according to InsurTech Insights.
Over the past two years, Zurich and Aon have conducted thorough research and engaged with customers to understand the specific requirements and challenges in developing blue and green hydrogen projects.
Blue hydrogen is created from natural gas using carbon capture technologies to reduce carbon emissions, whereas green hydrogen is produced by splitting water into hydrogen and oxygen through electrolysis powered by renewable energy.
The newly launched multi-line clean energy insurance facility provides comprehensive coverage through a single integrated policy. This includes construction, delay in start-up, operational cover, business interruption, marine cargo limits, and third-party liability.
Additionally, it covers carbon capture, utilisation, and storage technologies, offering customers a complete suite of solutions across the entire value chain of hydrogen production.
Zurich will act as the lead insurer, while Aon will serve as the exclusive broker for this facility.
The facility has garnered significant interest from participating insurers, surpassing expectations.
Sierra Signorelli, CEO Commercial Insurance at Zurich, said, “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. We are proud to bring this ground-breaking initiative to the market together with Aon.”
Joseph Peiser, Global CEO of Commercial Risk at Aon also commented, “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 addressing the complex risks associated with hydrogen projects across the entire project life cycle.”
